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Business Studies · 2024 · 4 marks
CBSE 2024 · Region 2 · Set 1 · Q28
Distinguish between Primary Market and Secondary Market on any four bases.
Distinguish between Primary Market and Secondary Market on any four
bases.
Marking-scheme solution
Difference between Primary Market and Secondary Market:
| Primary Market | Secondary Market | |
| i | It involves sale of securities by new companies or new issue of securities by existing company to investors. | There is trading of existing shares only. |
| ii | Securities are sold by the company to the investors directly. | Ownership of securities is exchanged between investors. |
| ii i | It directly promotes capital formation. | It indirectly promotes capital formation. |
| iv | Only buying of securities takes place. | Both the buying and selling of securities takes place. |
| v | Prices are determined and decided by the management of the company. | Prices are determined by demand and supply for the security. |
| vi | There is no fixed geographical location. | Located at specified places. |
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CBSE Class 12 Business Studies past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.