Primary market

The primary market is used by issuers for raising fresh capital from the investors by making initial public offers or rights issues or offers for sale of equity or debt, since the investors in the primary market are assured of a continuous market where they have an option to liquidate their investments.The resources in the primary market can be raised either through the private placement route or through the public issue route by way of Initial Public Offer (IPO) or Follow on Public Offer (FPO). It is a public issue, if anybody and everybody can subscribe for it, whereas, if the issue is made to select group of people then it is termed as private placement.