The primary market is the market where enterprises issue stocks, with enterprises, brokers, institutions or individual investors who apply for stocks as the main participants. This market is a way for enterprises to directly throw their shares into the market, so it can also be called wholesale market.

The secondary market is the stock transfer of institutional or individual investors in the stock exchange, with investors and brokers as the main targets. A-share market belongs to the secondary market.

First, the primary stock market refers to the primary stock market, that is, the issuance market, where investors can subscribe for shares issued by companies. Issuers raise funds needed by the company through the primary market, and investors buy shares of the company and become shareholders of the company to realize the process of converting savings into capital.

In western countries, the primary market is also called the securities issuance market, the primary financial market or the primary financial market. In the primary market, demanders can obtain funds by issuing stocks and bonds. In the process of issuance, issuers generally do not directly deal with buyers who hold money, but need an intermediary, namely a securities broker. Therefore, the primary market is also the securities broker market.

Second, the secondary securities market is the trading place and circulation market of securities and the trading place of issued securities.

The secondary market is a capital market, which makes it possible to trade financial securities that have been publicly issued or privately issued. In other words, the secondary market is the trading market of any old financial products, which can provide liquidity for the initial investors of financial products. The financial commodities here can be stocks, bonds, mortgage loans, life insurance, etc.