Primary Capital Markets
The primary market refers to trading in new issues of securities. This could be bond issues by corporations or governments, stock issues by corporations or other types of securities in which the initial trade is being made by transferring funds from investors to the security issuer.
Consider, for example, the initial public offering of a stock. The company sells shares to investors, increasing the total number of shares outstanding. Proceeds from the sale increase the company’s cash position, which enables it to invest in new opportunities.
For more information, see all articles on: Investing in Stocks, Investing in bonds, Trading Execution See also:
The Intelligent Investor: The Classic Text on Value Investing
Financial Statement Analysis: A Practitioner's Guide, 3rd Edition
Managing Investment Portfolios: A Dynamic Process (CFA Institute Investment Series)