Definition
Financial markets where new securities are issued and sold for the first time. In primary markets, companies, governments, and other entities raise capital by selling newly created securities directly to investors, often through mechanisms like initial public offerings (IPOs) or bond issuances.
Example Usage
"The company raised $500 million in the primary market through its initial public offering, providing capital for expansion into new territories.”
Related Terms
Initial Public Offering (IPO)Secondary MarketsUnderwritingBook Building
Tags
MarketsInvestment BankingCapital FormationIssuance
Course Module
Module 1: Introduction to Financial Markets
