This shows you the differences between two versions of the page.
Next revision | Previous revision | ||
en:primary-market [2014/01/09 14:12] 200.123.220.152 created |
en:primary-market [2015/06/13 09:11] (current) federico [Function of the Primary Market] |
||
---|---|---|---|
Line 1: | Line 1: | ||
====== 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]]). | ||
+ | |||
+ | 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]] | ||