What do we mean by primary markets?
On the primary market, new financial instruments are issued, while on the secondary market, securities already in circulation are exchanged. Concretely, when a company issues a new share or bond in order to raise capital, these are placed with investors via the primary market. For instance, among primary market operations are IPOs (Initial Public Offering), through which companies list themselves on the market to involve a wider audience of shareholders.
Once the placement of the securities on the primary market is concluded, these can be subsequently traded on the secondary market until they reach maturity. To learn more about secondary markets and the EBF’s work on this topic, click HERE.