Title Financial Economics UNit 1.docx ✅

Financial Market: Financial markets are platforms or systems where individuals, institutions, and governments buy and sell financial assets such as stocks, bonds, currencies, commodities, and derivatives. Financial market is a given system and mechanism through which various types of financial instruments or assets are traded and also deals with short, medium, and long term finance (Depositing, Borrowing, Lending, Facilitating, Issuing, Organizing, Trading, Transferring, and Hedging) of funds. 1. Difference between primary and secondary market. (2020) Primary Market vs Secondary Market Definition: Primary market is the place that facilitates the direct trading of securities in between issuing company and the investors whereas the secondary market is the place where the trading of securities takes place among the  investors.  Mediator: Primary market (merchant bankers and underwriters), Secondary market (stock brokers)  Types of Securities: Primary market (only new securities are traded), Secondary market (existing securities are Traded).  Pricing: Primary market (determined by issuing company), Secondary market (determined by market forces)