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 ?
Saudi Arabia is the United Kingdom's primary trading partner in the Middle East.
be the primary trading venue for the Company's shares.
The Board looks forward to the continued support of its current AIM shareholders through its TSX listing, which will continue to be the primary trading venue for the Company's shares.
With about 80 per cent of the UAE's imports from Africa being primary products, such as food produce and beverages, the UAE is Africa's primary trading partner within the Middle East countries.
Analysts note that the US has ceded its place as Africa's primary trading partner to China, which now has import-export deals with the continent worth about $200bn annually.
The Group's primary trading businesses are the supply and transport of crude oil, petroleum products, renewable energies, coal, refined metals, ferrous and non-ferrous ores and concentrates.
Asia has overtaken Europe as the MENA region's primary trading partner, while trade within the MENA region is growing at an annual rate of 17.
Dubai alone has 385 luxury brands and has become the primary trading hub in the GCC with luxury retail sales growing at an average of 12 per cent per year according to Luxury Movement, a management consultancy specialising in the luxury industry within developing markets.
Aa "At the same time, with it's proximity to the Emirates Highway, the primary trading area of the mall will be further expanded with customers from Sharjah, the Northern Emirates and Dubailand developments.
The dollar is still the world's primary trading medium, and virtually all commodities are priced in it.
Their primary trading position must be to constrain excessive risk to shareholders' funds and savers' deposits, while also taking measured and prudent lending decisions.
Taking the example of a financial institution with the primary trading workforce located on the island of Manhattan with a primary data center tens of miles away in another state, the guidelines may be interpreted such that little marginal resiliency is required to meet the requirements, inasmuch as the primary processing facility is not located within a key target region (i.