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Give features of primary market

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Give features of primary market
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Meghna Thapar 4 years ago

In a primary market, securities are created for the first time for investors to purchase. New securities are issued in this market through a stock exchange, enabling the government as well as companies to raise capital. For a transaction taking place in this market, there are three entities involved.

Main features of the primary market (type of Capital Market) are as follow:

  • (1) It is related with New Issues:
  • (2) It has No Particular Place:
  • (3) It has Various Methods of Floating Capital:
  • (i) Public Issue:
  • (ii) Offer for Sale:
  • (iii) Private Placement:
  • (iv) Right Issue:
  • (v) Electronic Initial Public Issue (e-IPOs):
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