The Primary Market:
It also known as the New Issue Market, is where new securities are raised and issued to the public for the first time. It is utilised by both new and existing businesses. For the purpose of raising long-term cash, the corporation issues additional shares and debentures. Securities are issued through the prospectus.
Businessmen, clients of the company, corporate workers, present shareholders, and others can buy new shares and debentures.
- In comparison to the secondary market, there is less price manipulation.
- There are no brokerage fees, transaction fees, or other charges.
- It is unaffected by market movements.
- It contributes to portfolio diversity.
- Investors are given a share of the company at a