Scribd
Upload
5 views

Meaning &function of Primary Markets

Uploaded by

sharonjune1006
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
5 views

Meaning &function of Primary Markets

Uploaded by

sharonjune1006
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 9

MEANING &FUNCTION OF PRIMARY MARKETS

SUBJECT : FINANCIAL MARKETS

NAME: DEEPA METHA C


ROLL NO: MBAF2411
CLASS: I MBA(FM)
PRIMARY MARKETS

The primary market is where new securities are issued and sold for the first
time to raise capital for companies or governments. It allows issuers to obtain
funds directly from investors through mechanisms like IPOs or bond offerings.
OBJECTIVES
Primary markets play a critical role in the financial system by facilitating the
.
issuance of new securities. These markets serve as the platform where companies,
governments, or other entities raise capital by issuing stocks, bonds, or other
financial instruments for the first .

KEY POINTS
• Capital formation
• Economic growth
• New securities
• First –time issuance
Types Of Primary Markets

1. Initial Public Offering (IPO)


2. Follow-on Public Offering (FPO) or Secondary Offering
3. Private Placement
4. Rights Issue
5. Debt Issuance (Bond Offerings)
6. Convertible Securities
7. Preferred Stock Offering
Initial Public Offering (IPO):

An Initial Public Offering (IPO) is the process through which a private company offers its shares to
the public for the first time. This allows the company to raise capital from public investors and is
often a way to finance growth, pay down debt, or provide liquidity to existing shareholders.

Follow-on Public Offering (FPO) or Secondary Offering

A Follow-on Public Offering (FPO) is a public issuance of new shares by a company that is
already publicly listed. This is done after the company has already conducted its IPO.
Characters Of Primary Market

• New Issuances of Securities


• No secondary trading
• Issuer and investor interaction
• Understanding process
• Regulatory oversite
Primary market intermediaries

• Investor Banks
• Underwriters
• Broker- Dealers
• Financial Advisor
• Security Firms
Primary Market Regulations

• Securities and Exchange Commission (SEC) – United States


• Financial Conduct Authority (FCA) – United Kingdom
• European Securities and Markets Authority (ESMA) – European Union
• International Organization of Securities Commissions (IOSCO)
• Securities and Exchange Board of India (SEBI) – India
THANK YOU

You might also like