O'Reilly logo

An Introduction to Trading in the Financial Markets: Trading, Markets, Instruments, and Processes by R. Tee Williams

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

1

The Primary Market

The primary market is the place where securities are created. Unlike the secondary markets described in Chapter 2, the primary markets raise money on behalf of companies or governments. Figure 2.1 shows the purpose of the primary market.

image

Figure 2.1 The primary market provides a mechanism for investors and their intermediaries to funnel disposable income to companies and governments that employ those funds to generate economic growth, resulting in income and market appreciation for the investors.

There are a number of different processes for raising capital in the primary market. We explore these processes in Part 4. Here, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required