Initial public offering is the process where new securities are sold to public and firms raise huge cash from sharing its ownership stakes in a company. What is the basic difference between a primary and a secondary market?

		proceeds from sales in the primary market go to the current owner of a security; proceeds in secondary market go to the original owner.
		primary market is where new securities are sold; secondary market is where only outstanding securities are bought and sold.
		primary markets deal exclusively in bonds; secondary markets deal primarily in common stock.
		primary markets deal exclusively in common stocks; secondary markets deal primarily in bonds.
		primary markets involve direct dealings within regional exchanges.