Question
State any three features of ‘Primary Market’.
Solution
The chief features of primary market are the following:
(i) It is related with New Issues: The first important feature of the primary market is that it is related with the new issues. Whenever a company issues new shares or debentures, it is known as Initial Public Offer - (IPO).
(ii) It has no Particular Place: Primary market is not the name of any particular place but the activity of bringing in new issues is called the primary market.
(iii) It comes before Secondary Market: The transactions are first made in the primary market. The turn of the secondary market comes later.
