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en:primary-market [2015/03/26 11:48] 127.0.0.1 external edit |
en:primary-market [2015/06/13 08:58] federico |
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| ====== Primary Market ====== | ====== Primary Market ====== | ||
| - | Part of the capital market where new financial instruments are sold and bought. An instrument can be sold only once y the primary market. Funds raised in the primary market go directly to the issuer (the government or a corporation). | + | Part of the [[en:capital-market|capital market]] where new [[financial instruments]] are sold and bought. An instrument can be sold only once in the primary market. Funds raised in the primary market go directly to the issuer (the government or a corporation). |
| + | When a company issues stocks in the capital market for the first time, the sale is called initial public offering ([[en:ipo|IPO]]). | ||
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| + | Once issued, the instruments sold on the primary market can be traded again on the [[en:secondary-market|secondary market]]. | ||
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| + | The primary market serves as a way to facilitate capital formation in the economy. Many companies issue instruments on the primary market to achieve new investments. Also, many investment are done with the expectation of obtaining a profit by issuing stocks in the primary market. | ||
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| + | ===== See also: ===== | ||
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| + | [[en:ipo|IPO]] | ||
| + | [[secondary market]] | ||