primary market

Primary Market

The market in which investors have the first opportunity to buy a newly issued security.

Notes:

After the first purchases, subsequent trading is said to occur in the secondary market.

See also: IPO, Secondary Market, Third Market

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Primary market

Where a newly issued security is first offered. All subsequent trading of this security occurs is done in the secondary market.

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primary market

The market in which new, as opposed to existing, securities are sold. Investors who purchase shares in a new security issue are purchasing them in the primary market. Investors who buy stocks and bonds in the primary market usually are not required to pay brokerage commissions because fees for selling the issue are built into its price and are absorbed by the issuer. Also called new issue market. Compare secondary market.