Primary - secondary market price difference?

suppose a given security ( stock / bond ) is sold in primary market for the first time at any given price price ,lets say " X "

then after it lands in the secondary market .

  1. how to predict if the price of a given security in secondary market will be higher or lower than its price in the primary market ?

  2. kindly explain keeping only govt.securities, corporate bonds , debentures , debt. instruments of any & all kinds , bonds of govt. bodies like NHAI , IREDA , IRFC , LIC etc , in focus.

  3. kindly explain with espect to IPOs .

  1. Its based on supply and demand, the markets determine the price of the stock. If the demand > supply, listing price will be higher than the issue price (Eg: Interglobe), if demand < supply, listing price will be lower than issue price (Eg: Coffee day)

  2. Didn’t understand

  3. Didn’t understand.

2 Likes
  1. when we buy govt. securities directly in primary market then sell them on NSE , likewise for other respected bonds .
  2. u answered by the coffee day etc example
    thank you