Secondary markets are smaller and less significant than primary markets, which are bigger and more significant.- False
What is the primary market?
- New stocks and bonds are initially offered for public purchase on the primary market.
- Investors have the option to buy securities straight from the issuer in a primary market.
- A rights issue, a preferred allotment, a private placement, and an initial public offering (IPO) are examples of primary market issues.
- As secondary markets, where investors transact with one another, stock exchanges serve as a substitute.
- Securities are exchanged between investors on what is referred to as the secondary market after they have been issued on the main market; in essence, this is where the well-known stock exchanges are located.
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