This shows you the differences between two versions of the page.
Both sides previous revision Previous revision Next revision | Previous revision Last revision Both sides next revision | ||
en:primary-market [2015/06/13 08:59] federico |
en:primary-market [2015/06/13 09:10] federico [Function of the Primary Market] |
||
---|---|---|---|
Line 7: | Line 7: | ||
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]]. | ||
- | 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. | + | ===== Function of the Primary Market ===== |
+ | |||
+ | The primary market serves as a way to facilitate capital formation in the economy. Capital goods are those good that have the capacity to increase the supply of consumption goods in the future. | ||
+ | |||
+ | 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. | ||
===== See also: ===== | ===== See also: ===== |