The Primary Market
This chapter will enable you to develop an understanding of the following:
Fund-raising through prospectus, rights issues, private placement, and preferential issues
Book building : a new issue mechanism
Trends in resources mobilised from the primary market
Trends in resources mobilised from international capital markets
The primary market is a market for new issues. It is also called the new issues market. It is a market for fresh capital. Funds are mobilised in the primary market through prospectus, rights issues, and private placement.
Bonus issue is also one of the ways to raise capital but it does not bring in any fresh capital. Some companies distribute ...