Primary market
Also called: new issue market
The part of the market where companies sell newly created shares to investors and receive the money.
In the primary market, securities are sold for the first time. A company creates new shares and sells them, for example in an IPO, a follow-on public offer or a rights issue, and the money goes to the company.
This is different from the secondary market, where existing shares change hands between investors.
Learn more in these lessons
- Primary and secondary marketsWhat is the difference between the primary and secondary market?
- IPO basicsWhat is an IPO and how do you apply for one?
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