In primary market, initial securities are created for the first time mainly for the investors to purchase. Via this market, new securities are issued, so that the government and other companies can raise capital. A transaction to occur in this market, three entities are needed, they are a company, investors and an underwriter. The company issues the security as Initial Public Offering (IPO) and the sale price of the new issue is determined by the underwriter, who also monitors the new issue offering. Investors purchase the newly issued securities in the primary market and this type of market is regulated by SEBI (Securities and Exchange Board of India). Examples of securities issued are notes, bills, government bonds also stocks of companies. Functions are underwriting services, new issue offer, new issue distribution etc. Issuance is the ways by which investors purchase the securities, by listing in the public as stock exchange for trading, private placements, rights and bonus, qualified institutional placements and preferential issuance. The topic is explained in detail in the PowerPoint presentation.

Nazrin Farzana

26 resources

1

7

0

Like