See: IPO. See: Primary Market.
It's like the financial market equivalent of a new kid in school...or that up-and-coming singer who just released her first single. A new issue is just what it sounds like: a stock (or other security) getting sold to the public for the first time. Or, you could say: newly issued.
Companies raise money in various ways. They can borrow from a bank or other source (which doesn't really play a role here). Or they can bring in cash by selling bonds or stock. Bonds represent debt; the company selling them is borrowing money that they will pay back at interest. Meanwhile, shares of stock equate to tiny ownership stakes in the company. Either of these can become new issues when they're made public for the first time.
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Finance: What is a primary offering, and...29 Views
finance a la shmoop what is a primary offering and what are primary shares all
right people let's start with the primary offering it's pretty much just
an IPO or initial public offering of stock that's primary and hello 1933 Act [The 1933 securites act is slid onto a desk]
that's what gave rise to all the regulations around primary offerings its
original shares virgin ones in fact now being offered for the first time to an [Someone holding 'extra virgin stock']
investor public primary offering that's what it is
but primary shares also come from private companies like a venture capital [Sign for a venture capital company]
company might buy primary shares in a b round from whatever.com as that company
funds its growth now once a company is already public its shares will have
traded back and forth in many different hands over time those would be called [Secondary shares stamp]
secondary shares and hello 1934 Act which set the regs all around
secondaries so yeah primary 1933 secondary 1934 and well that's pretty
much it as long as you can count to two this one's a pretty easy concept to
would wrap your head around.. primarily.. [Woman looks confused]
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