Primary market
Encyclopedia : P : PR : PRI : Primary market
The primary market is that part of the capital markets that deals with the issuance of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers. The process of selling new issues to investors is called underwriting. In the case of a new stock issue, this sale is called an initial public offering (IPO). Dealers earn a commission that is built into the price of the security offering, though it can be found in the prospectus.
See also
| Financial markets |
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Economic subtypes:
Capital markets (Stock markets, Bond markets |
Primary markets, Secondary markets) |
Derivatives markets
(Futures Markets) Money markets | Insurance markets | Foreign exchange markets | Commodity markets Organisations: Stock exchange | Futures exchange Related Topics: List of stock exchanges | List of futures exchanges | Lloyd's of London | List of stock market indices |
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