Finance glossary
Primary Market
Definition
Where securities are first issued and sold by the issuer.
The primary market is where companies and governments sell new securities directly to investors to raise capital, as in an IPO or a bond issuance. Proceeds go to the issuer. Once issued, these securities then trade among investors on the secondary market.
In a sentence
The company raised fresh cash by selling new shares in the primary market during its IPO.
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