What is the difference between primary and secondary market?

The main differences between the two terms

On the Funderbeam platform, investors can invest in a company two ways: one is by the primary market and the other by the secondary market.

The primary market is where investors buy shares of the company directly from the company. The securities are issued for the first time by the company itself to the investors. The price of the securities is fixed.
On Funderbeam, it means investing into an open syndicate on the syndicate page. You can access all open syndicates on the invest page.

The secondary market is where investors buy into the company via trading shares with existing investors. Secondary market provides liquidity for the investors because the securities are sold by one investor to another. The prices on the secondary market vary, depending on the demand and supply of the securities.
On Funderbeam, this means exchanging fiat currency for shares on our marketplace. You can access the secondary market on the trading page.

To conclude, if you are buying company shares from the primary market, the company gets new money in. As an investor, it would be wise to look at what they plan to use those funds for. Read more about it here. Buying from the secondary market means the company won’t get new money, the exchange is between two investors only.

The information about the investment opportunities profiled on this website is provided for general information and marketing purposes only and should not be considered an invitation or inducement to engage in any investment activity. Complete and comprehensive information about an investment opportunity is only available to the investors who have been approved by a Funderbeam group entity.

You should ensure you carefully read the Risk Disclosure Statement before deciding to proceed with any investment. Funderbeam has taken steps to ensure that the campaign information is clear, fair and not misleading in accordance with its internal verification procedures. Funderbeam does not provide investment advice or any recommendation to invest. The investment opportunity should not be considered as an offer to the public and is not directed at or offered to anyone located in a jurisdiction where it is unlawful to do so.

This page provides you with an overview of the services provided by different entities belonging to Funderbeam Group. In this page, we generally refer to the group as “Funderbeam”, “we”, “us” or “our”. It is important to note that funds can be raised, investments made and trade orders placed through Funderbeam Markets Limited (authorised and regulated by the UK Financial Conduct Authority under FRN 794918) or Funderbeam Markets Pte Ltd (licensed and regulated by the Monetary Authority of Singapore under Capital Markets Services (CMS) license CMS100863). In parallel, the Marketplace is operated by Funderbeam Markets OÜ, a company registered in Estonia, operating in reliance on certain regulatory exemptions in Estonia.