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en:primary-market [2015/06/13 08:59] federico |
en:primary-market [2015/06/13 09:11] (current) federico [Function of the Primary Market] |
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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]]. | ||
| - | 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 ===== |
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| + | 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. | ||
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| + | 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: ===== | ===== See also: ===== | ||