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en:primary-market [2015/06/13 08:59] federico |
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| Once issued, the instruments sold on the primary market can be traded again on the [[en:secondary-market|secondary market]]. | Once issued, the instruments sold on the primary market can be traded again on the [[en:secondary-market|secondary market]]. | ||
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| + | ===== Function of the Primary Market ===== | ||
| 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. | 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. | ||