Capital Market Finance: An Introduction To Prim... May 2026

Focused on long-term financing, distinguishing them from short-term "money markets".

Selling securities to a small group of select investors. Participants Issuers: Corporations or governments raising funds.

The original issuer is not involved in these transactions and does not receive additional funds. Capital Market Finance: An Introduction to Prim...

A private company's first sale of stock to the public. Rights Issue: Offering new shares to existing shareholders.

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 The original issuer is not involved in these

Prices fluctuate constantly based on supply and demand.

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 The primary market is where securities are created

Includes stocks (equity) , bonds (fixed income), and derivatives.