primary 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.

Primary Market

The first group of investors to whom a new issue of a security is sold. The primary market consists of the issuer and the first buyers of the issue. All subsequent trading takes place on the secondary market. Underwriting is the process by which the primary market functions, that is, how issues are sold to the primary buyers. The primary market can at times be more volatile than the secondary market because it is difficult to determine the underlying value of new issues. In any case, the primary market accounts for only a portion of trade on a given trading day. See also: Rights issue, Preferential issue, Initial public offering.

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.

Primary market.

If you buy stocks or bonds when they are initially offered for sale, and the money you spend goes to the issuer, you are buying in the primary market.

In contrast, if you buy a security at some point after issue, and the amount you pay goes to an investor who is selling the security, you're buying in the secondary market.

The term primary market also applies the leading or main markets for trading various products. For example, the New York Stock Exchange (NYSE) is a primary market for stocks.

primary market

Any market in which the original issuer receives money, such as an investment house that purchases all securities for an original issue and then resells them on the stock market. Also called the loan origination market. Contrast with secondary market, where mortgages are pooled and then sold to others.

References in periodicals archive ?
Underpricing of the issue vis-a-vis the initial listing price is an important aspect of the performance of the primary markets.
Insights were also offered into public flotation by guest speaker Mark Fahy, head of UK and primary markets at the London Stock Exchange, who told a range of businesses poised to take their enterprises to the next level how the IPO investment share pipeline is the strongest it has been in 12 months.
They are willing to reward that identity with market terms that are comparable to those in primary markets.
The sales were in conjunction with Northeast Savings' efforts to concentrate on the four primary markets in which it has the greatest presence and potential: the capital region of New York state; Hartford, Connecticut; and Springfield and Worcester, Massachusetts.
The barter company then remarkets the inventory in a way that doesn't interfere with our primary markets.
Meanwhile, several industry sources are projecting a decline in unsaturated polyester resin prices as early as this quarter, as demand in primary markets has dropped considerably and styrene monomer prices are expected to soften.
Reflect Scientific targets strategic acquisitions that will increase revenue and profits in their primary markets and that will fulfill Reflect's strategic imperative of significant, sustained revenue growth through innovative market need-based products.
public primary markets will continue to grow, but the advance is likely to be at a slower pace than in the private placement sector, he said.
chairman and chief executive officer of Bankers First Corporation (NASDAQ-NMS: BNKF), commented, "The sale of the Savannah operation is part of our restructuring plan to sell branch banking facilities in communities that are outside of our primary markets.
This may prove to be particularly burdensome in select primary markets such as Dallas and Fort Worth, where overall volatility has gone up for the last two years.
Primary markets include North America, Europe, and Asia.
2% of RioCan's annualized rental revenue was from properties located in these six primary markets.

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