easy · Debt Capital Markets secondary-trading-liquidity
What is the primary difference between 'Primary' and 'Secondary' debt capital markets?
- Primary market prices are set administratively by the SEC, whereas secondary market prices are instead governed purely by the prevailing forces of investor supply and demand.
- Secondary market transactions channel fresh capital straight to the issuing company so that it can finance strategic acquisitions and fund its ongoing daily operations.
- The primary market exists exclusively for government and sovereign bonds, whereas the secondary market is reserved strictly for the trading of corporate bonds among investors.
- The primary market is where new bonds are created and sold to investors for the first time, whereas the secondary market is where existing bonds are traded among investors.
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