Primary Market

The primary market market in the Finance field is the market where financial assets such as stocks and bonds are issued and sold to investors for the first time. In this market, companies, governments, or institutions raise capital by directly selling securities to investors.

1. First Sale Occurs: Securities are issued for the first time and offered directly to investors.
2. Transaction Occurs Between Issuer and Investor: Buying and selling takes place between the issuing company or public institution and the investor.
3. Enables Capital Increase: Companies and governments raise funds here to secure financing.
4. First Step Toward the Secondary Market: After the initial sale, securities begin trading in the secondary market such as stock exchanges.

• Initial Public Offering (IPO): A company’s first-time offering of its shares to the public on a stock exchange.
• Bond Issuance: Governments or companies raising funds by selling bonds to investors.
• Private Placement: Companies selling securities directly to specific investors.