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 Glossary   >   P   >   "Primary market" Definition   

        Primary market

The function of a stock exchange in bringing securities to the market for the first time. Money is raised either for the owners before flotation of the company or to fund future growth.

Market for the placement of new securities such as international, domestic and foreign bond issues. Any subsequent resale or purchase is handled on the secondary market.

The first buyer of a newly issued security buys that security in the primary market. All subsequent trading of those securities is done in the secondary market.

A market in which new issues are traded. In other words, the trading of shares directly between a company and investors.By contrast, the secondary market involves investors buying and selling with other investors, with market makers and brokers facilitating trade. The companies whose shares are being traded are not directly involved in the secondary market, unless they engage in a share buyback.

Primary market


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Primary market - The function of a stock exchange in bringing securities to the market for the first time. Money is raised either for the owners before flotation of the company or to fund future growth.

Market for the placement of new securities such as international, domestic and foreign bond issues. Any subsequent resale or purchase is handled on the secondary market.

The first buyer of a newly issued security buys that security in the primary market. All subsequent trading of those securities is done in the secondary market.

A market in which new issues are traded. In other words, the trading of shares directly between a company and investors.By contrast, the secondary market involves investors buying and selling with other investors, with market makers and brokers facilitating trade. The companies whose shares are being traded are not directly involved in the secondary market, unless they engage in a share buyback.


Primary market : the function of a stock exchange in bringing securities to the market for the first time. money is raised either for the owners before flotation of the company or to fund future growth.

market for the placement of new securities such as international, domestic and foreign bond issues. any subsequent resale or purchase is handled on the secondary market.

the first buyer of a newly issued security buys that security in the primary market. all subsequent trading of those securities is done in the secondary market.

a market in which new issues are traded. in other words, the trading of shares directly between a company and investors.by contrast, the secondary market involves investors buying and selling with other investors, with market makers and brokers facilitating trade. the companies whose shares are being traded are not directly involved in the secondary market, unless they engage in a share buyback.