What is Primary Market ? (meaning, Features, Functions and Methods)

What is Primary Market ? 

(meaning, Features, Functions and Methods)

What is Primary Market ? 

Meaning of Primary Market:- 

The primary market refers to the financial market place. Where new securitiee such as stocks or bonds are issued and initially sold to the investors directly from the issuing company. it is also called the new issue market.

Features or Characteristics of Primary Market :-

1. Market for new issues. 

2. Capital formation. 

3. Limited liquidity. 

4. Direct transaction. 

5. SEBI regulation 

Functions of Primary Market :-

1. Racing capital.

2. Facilitating new listing. 

3. Underwriting. 

4. Organisation. 

5. Distribution. 

Method of issuing new security in primary market. 

1. Public issue by prospectus. 

2. Offer for sale. 

3. Placement method. 

4. Right issue. 

5. Bonus issue. 

6. Book building. 

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