Financial Institution Unit V Name Course Instructor Date What is the difference between primary markets and secondary markets? Primary markets relate to markets where financial instruments are first issued for the buyer to purchase unlike the secondary markets where securities already exist in the market as they have previously been issued or are resold (Mishkin, & Eakins, 2012). The initial issuer of the securities can only transact the financial instruments via the primary market. For instance, the initial public offer where companies are listed publicly is an example where a company sells securities in the stock exchange which acts as the primary market at the time. The subsequent purchase and sale of shares can occur through intermediaries, dealers and stock brokers in the secondary market. The secondary markets can be exchanges organized into central locations, but they can also be in the form of over the counter markets with various locations to facilitate the sale of titles (Burton, Nesiba & Brown, 2014). The secon