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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
CrossFirst Bankshares is the holding company for CrossFirst Bank, which provides a full suite of financial services to businesses, business owners, professionals and their personal networks throughout its five primary markets -- Kansas, Missouri, Oklahoma and Texas.
Summary: Corporate IPOs led primary markets in 2018, contributing 56% to number of issuances and 62% of capital raised
During the previous 12 months, primary markets have seen average occupancy gain of 1.3 percent.
"Bloomberg's solution provides an optimal, cost-effective and secure way to manage operations for primary markets for issuers who would otherwise have to conduct a manual process, or have to build and implement their own solution," he noted.
In fact, allocations to global real estate primary markets have increased in the last three years, a trend followed in Dubai as well, even as the gap between the primary and secondary real estate continued to widen.
More so, dealers at Afrinvest said they expect a largely positive performance in the secondary T-Bills market as investors with unsuccessful bids at the Primary Markets Auction (PMA) held last week mull over opportunities in the secondary market.
The only silver lining has been the primary markets with a marked increase in both debt and equityissuances so far in the current financial year.
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.
Guy Wylie, an ex-employee of UBS (NYSE: UBS), has been named the new head of primary markets for Asia Pacific at the Royal Bank of Scotland (LON:RBS).
In addition, Fitch believes that competitive pressure would ease to some extent in 2010 as industry leaders once again focus on fulfilling the growing demand in their primary markets in Java, especially since there are no major increases in capacity planned until 2012.

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