In one sentence: the primary market is where companies create new securities and sell them for the first time; the secondary market is where those same securities then trade between investors, day in and day out, on the Casablanca Stock Exchange.
If you're new to investing, understanding this distinction is the first step to knowing where the money you invest goes and where the shares you buy come from.
The primary market: where securities are born
What is it?
The primary market is the market of creation. This is where a company (or the state) issues brand-new securities — shares, bonds, mutual fund units — for the first time. The goal: raise capital to fund growth, finance investment projects, or repay debt.
How does it actually work?
The best-known example is an Initial Public Offering (IPO). A Moroccan company decides to open up to the public, sets a price per share, opens a subscription window, and any investor — retail or institutional — can buy these brand-new shares. The money paid by subscribers goes directly to the company.
Why does it matter to you?
By subscribing to an IPO you fund the company's growth plan directly. You become one of the very first holders of the security, at a pre-set issue price. The primary market is also where new government bonds and new investment funds are placed.
Products involved: shares newly issued in an IPO or capital increase, bonds at issuance, newly created mutual funds.
The secondary market: securities trading day to day
What is it?
The secondary market is the market of exchange. This is where securities already issued on the primary market change hands between investors. When you buy an Attijariwafa Bank or Maroc Telecom share on the Casablanca Stock Exchange today, you're on the secondary market.
How does it actually work?
You place a buy order. Someone else — another retail investor, a fund, an institution — places a sell order at the same price. The exchange matches the two and the trade executes. The money goes to the previous holder, not to the company.
Why does it matter to you?
You can resell your securities whenever you want (provided there are buyers — that's called liquidity). Prices move constantly with supply and demand, which creates opportunities… and risks. Without an active secondary market the primary market would be unattractive: who would want to subscribe to an IPO if they couldn't resell afterwards?
Products involved: listed shares, listed bonds, mutual fund units available for resale.
The two markets are inseparable
| | Primary market | Secondary market |
|---|---|---|
| Role | Creation of securities | Trading of existing ones |
| Who gets the money | The issuing company | The previous holder |
| Frequency | One-off (IPOs, capital increases) | Continuous (every trading day) |
| Example | Subscribing to an IPO | Buying a stock on the exchange |
Without a primary market, no new securities to buy. Without a secondary market, no liquidity to exit positions. The two are complementary and essential to a healthy Casablanca Stock Exchange.
And on Nommo?
On Nommo you can access both markets from the same app:
- Primary market: track current Moroccan IPOs and subscribe in a few taps from the IPO section.
- Secondary market: freely buy and sell shares, bonds, and mutual fund units listed on the Casablanca Stock Exchange.
To go further, read our guide on understanding IPOs and our financial glossary covering all the key terms.