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capital market vs secondary market

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Discuss what is a capital market and how is a primary market differs from a secondary market? In your opinion, are these markets efficient? Why or why not

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Solution Summary

describes the difference between capital and secondary markets and includes comments on their efficiency

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The capital market is the market where securities such as stocks and bonds are traded. What most people think of as the stock market, or where most stocks are traded, is the secondary market. The primary market is the market for new securities issued from the companies. They include IPOs or initial stock offerings, when a company first enters the market by selling shares of the company, or when a company decides to sell additional shares to raise capital. New bond offerings are traded in the primary market.

Most trading of established ...

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