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 ?
While the previous proposals address the issues of liquidity and accessibility in the art market indirectly by creating new liquid or lucrative revenue streams, giving more people access to art in their homes, or making it easier to invest in the exclusive primary market, art exchanges would directly increase the accessibility and liquidity of art investment vehicles themselves.
She said the stamp duty exemption under the HOC was mainly for the primary market and the exemption only applied for properties priced below RM300,000 in the secondary market.
Third-party forecasts and several leading indicators continue to suggest that the North American lighting market, our primary market, should grow in the low-single digit range in calendar 2019, although some leading indicators of future market demand, such as the Architectural Billings Index and the Dodge Momentum Index, have recently softened.
'Although we are yet to see the auction calendar from the CBN, we also expect the primary market auction of T-Bills to impact system liquidity,' one dealer noted.
"Although the IPO market in the region has picked up in 2017 and 2018, corporate issuers continue to look for reduced volatility in oil prices, and a stable near term outlook for secondary markets within the region, to take to the primary market," said Faisal Hasan, head of investment research at Kamco.
At end-June 2018, Avolon was the third-largest aircraft lessor in the world, with 890 owned, managed and committed aircraft, operating mainly in the primary market. ORIX Aviation is smaller but a major player in the secondary market as one of the top 15 lessors in the world with more than 200 owned and managed aircrafts leased to more than 70 customers.
by Times News ServiceThe primary market witnessed a considerable and outstanding increase in the value and number of issues approved by the CMA, the report said.
Its primary market area for lending and deposit activities is the communities of Dorchester and Roslindale and the Town of Milton where it originates primarily residential mortgage loans, and, to a limited extent, multi-family mortgage loans, commercial real estate loans, construction loans, commercial business loans and consumer loans.
Endowment funds of Harvard University, Massachusetts Institute of Technology (MIT), University of Notre Dame and Washington University are testing their luck in Dalal Street, largely preferring the primary market.
Public offering of securities normally known as the primary market is an important segment of the capital market.
A prolonged bear run will hit the primary market hard.
As the flurry of off plan launches gathered momentum, liquidity was sucked out from the secondary market, while investors and speculators rushed to the primary market to capitalize upon payment plans.

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