New vs Old Securities
The NIM deals with new securities that is, securities which were not previously available and are, therefore, offered to the investing public for the first time. The derives its name from the fact that it makes available a new block of securities public subscription. The stock market, on the other hand, is a market for old securities which be defined as securities which have been issued already and granted stock exchange. The stock exchanges, therefore, provide a regular and continuous market for buying selling of securities. The usual procedure is that when an enterprise in need of funds, it the investing public, both individuals and institutions, to subscribe to its issue of 1. The securities thus floated are subsequently purchased and sold among the individual and national investors. There are, in other words, two stages involved in the purchase and sale of cities. In the first stage, the securities are acquired from the issuing companies themselves and are, in the second stage, purchased and sold continuously among the investors without companies whose securities constitute the stock in trade except in the strictly sense of registering the transfer of ownership of the securities. The section of the industrial market dealing with the first stage is referred to as the NIM, while secondary market the second stage of the dealings in securities.