WHAT IS PRIMARY MARKET?
What is Primary Market has turned to viral question asking in Nigeria and here is the perfect and correct answer for the question. Primary Market Can be referred to as where new issue of securities are been created and available for sale.
The market for new issue in all government securities is the issue office, central bank of Nigeria.
In another word Primary Market is where new stick and bonds are sold to the public for the first time.
Primary Market is used by companies and government entities sell new issue of common and preferred stock, corporate bonds, government bonds, notes and bills are also used to fund business improvement or to expand operation.
Types Of Primary Market
- Right issue
- Initial public offering
- Private placement
- Preferential allotment
Right issue is an offer to the company current stockholder to buy additional new shares.