Primary Market: Meaning, Functions, Types and More

How do companies raise funds to start or expand their businesses? And how do investors get access to new securities and benefit from their growth potential? The answer to all these questions lies in the primary market. It is the market where new securities are created and sold for the first time by the issuers. It is also known as the new issue market, as it offers new opportunities for both the issuers and the investors. Let us understand the features and the function of a primary market in India. In this blog, we study about new issue market and advantages and disadvantages of primary market.