Glossary
/Primary Market
What is the Primary Market?
This is where the magic of creating new shares actually happens. A company needs cash, so it approaches the public to buy its shares directly for the first time. IPOs and FPOs happen entirely in this space. The most important thing to know? The money you pay goes straight into the company’s bank account to fund its growth. Once the buying period closes, those shares move over to the secondary market (like the NSE/BSE), where you trade them among yourselves.
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