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--- en:primary-market [2015/03/26 11:48]
127.0.0.1 external edit
+++ en:primary-market [2015/06/13 09:11] (current)
federico [Function of the Primary Market]
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 ====== 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]]).
+Once issued, the instruments sold on the primary market can be traded again on the [[en:secondary-market|secondary 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 carry out new investments. Also, many investments are done with the expectation of obtaining a profit by issuing stocks in the primary market.
+===== See also: =====
+[[en:ipo|IPO]]\\
+[[secondary market]]