“Primary market basically to facilitate transfer of resources from the savers to the entrepreneurs seeking funds.” How?

Monjur Alahi

“Primary market basically to facilitate transfer of resources from the savers to the entrepreneurs seeking funds.” How?


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Salim Ahmed Kawsar

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Primary market refers to a place where issue of securities (shares, debentures and bonds) being issued for the first time by new companies or new issue Of securities by existing companies to investors. 

In these market all the entrepreneurs raise funds for: 

1. Setting new enterprises 

2. Expanding 

3. Diversifying

Therefore, it is also called as “New Issue Market”.

The ‘new issues’ may be issued by:

1. New companies – also called initial issues.

2. Old companies – also called further issues.

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