What distinguishes first tier security market from second tier security market?

The first tier security market, often referred to as the primary market, involves the issuance and initial sale of securities directly from companies to investors, typically through initial public offerings (IPOs). In contrast, the second tier security market, or secondary market, involves the buying and selling of existing securities among investors, without the direct involvement of the issuing companies. The first tier market is characterized by higher regulatory scrutiny and typically features larger, more established companies, while the second tier may include smaller firms and a wider variety of investment opportunities. Additionally, liquidity and price volatility can differ significantly between the two markets.