What is the difference between a primary and a secondary market?

"Primary Market" refers to the
initial offering of stocks or bonds to the buying public, as when a previously privately-owned
company decides to "go public" by issuing shares of its ownership, or stock, to the
public.  In the case of Initial Public Offerings, or IPOs, the stock is sold to the public for
the first time, and any subsequent transfer of that stock constitutes what is known as the
"secondary market."  

The "Secondary Market," then,
refers to the subsequent sell or transfer of stocks and bonds throughout the broader public
marketplace through designated exchanges, most prominently, the New York Stock Exchange and
Nasdaq.  The stocks bought and sold through these exchanges are no longer in the 'hands' of the
original issuing companies, but, rather, are sold from public hands to public
hands.