primary market investment & finance definition
The
market for new issues of stocks or bonds, when the proceeds from the sale go to
the company. Once a stock or bond issue is in the market-place and traded among
investors, it is in the secondary market.
See primary market in Wall Street Words
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.
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