Distinguish between primary market and secondary market.

| **Feature**               | **Primary Market**                                      | **Secondary Market**                                  |
|---------------------------|--------------------------------------------------------|------------------------------------------------------|
| **Definition**            | Market where new securities are issued for the first time. | Market where existing securities are traded among investors. |
| **Participants**         | Issuers (companies), underwriters, and investors.      | Investors, brokers, dealers, and market makers.       |
| **Purpose**               | Raises capital for issuers (e.g., IPOs, bonds).        | Provides liquidity and price discovery for investors. |
| **Timing**                | Occurs when a security is first sold (e.g., IPO).      | Occurs after the initial issuance (e.g., stock exchanges). |
| **Price Determination**  | Set by underwriters or auction (e.g., book-building).   | Determined by supply and demand (market-driven).     |
| **Regulation**            | Strict (SEBON, SECC, or relevant authorities).         | Regulated but more flexible (e.g., NEPSE, NEPSE A1).  |
| **Example**               | Initial Public Offering (IPO) of NMB Bank.             | Trading of NMB Bank shares on NEPSE.                 |