Subscription proceeds finance the issuer, subject to fees. This differs from trading securities that already exist.
Primary market
In a nutshell
The primary market is where newly issued securities are offered to investors.
On this page
Explained simply
A practical example
Hypothetical example: a government issues new bonds to finance its budget; investors subscribe to them on the primary market.
Further reading
Source: AMF — Financial markets.
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What this means
The funds finance the issuer after any fees: this is the primary market.
Educational scenarios. Amounts and rates are fictional, not current market conditions.