The process of issuing and sold share first time in primary market done by announcing an ipo (initial public offering)
Ipo - initial public offering it's mean when a company wants to offer their shares to public.
When a company comes with ipo then evry investor who want to invest in it they have to make a bid for ipo share and the investor who make good bid company give issu them the share .
• The key factor of primary market are.
Issuers - the company wants to raise funds from public .
Investor - the investment body (individuals investor, institutions)who want to invest in it.
Underwriter - the financial institutions which helps to evaluate the farm risk , loan , investment etc. by taking some comission.
Regulation - the government identity which make rules for primary market, which protects from fraud and scams.
Why primary market is important?
Primary market is important because it's provide facility to raising capital for newly company which help them to grow .
It's provide chance to investor to invest in newly shares which can give them a good return in future .
Now, confusing questions for beginners face.
If they buy shares from primary market then where they sale it can they sell back to the company .
NO.the shares buy from primary market directly to company can not be sell back to company now where the share are going to sell
In secondary market YES
When any new share issued to investor in primary market it can be only sell in secondary market .