Primary Market

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p>Primary market also know as new issue market is the market for issuing new securities&period; Majority of the companies opt for issuing new share in the primary market to raise the capital for expansion of business or finance its operations depends upon company strategy&period; The companies sell their securities through IPO – Initial public offering which means the securities are first time issued in the primary market&period; Primary market is the market for first hand securities&comma; it can also bought from the other shareholders but in that case it is called the secondary market transaction&period;<&sol;p>&NewLine;<p>Securities are issued on exchange basis in the primary market&comma; investors pay money for the number of securities purchased from the company&period; Underwriters play an important role in issuing the securities to the public&comma; they are the intermediaries between company and investors&period;&lbrack;linkunit&rsqb; They administrate the securities issuing process which involves handing over issued securities certificates to the investors on exchange of cash&period; The cash is paid to the company by the bank after deducting  their commission on issued securities&period; The collected amount generated from the issued shares are used to finance company operations or for expansion of the company&period;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;