Capital Market Finance: An Introduction To Prim... File

The primary market is where securities are created and sold for the first time. It is often called the "new issue market". How it Works

A private company's first sale of stock to the public. Rights Issue: Offering new shares to existing shareholders. Capital Market Finance: An Introduction to Prim...

Capital markets are platforms for buying and selling long-term financial instruments (typically with maturities over one year). Key Characteristics The primary market is where securities are created

Enables diversification and the use of hedging tools. 4. Summary of Key Differences Primary Market Secondary Market Asset State New securities only Existing, "pre-owned" assets Capital Flow From investor to the issuer Between investors Price Setting Fixed by management/underwriters Fluctuates via supply and demand Access Primarily institutional Open to retail and institutional 5. Regulatory Oversight Capital Market Finance: An Introduction to Prim...