Trading & Market Structure
Primary Market
Definition
What is Primary Market?
The market in which newly issued securities are sold and the issuer receives capital.
Example in practice
How This Looks in Practice
Investors subscribe to a new government bondA debt security issued by a government or government treasury. in the primary market.
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Related Terms
Trading & Market Structure
Bid
The highest price a buyer is currently willing to pay for a security.
Trading & Market StructureAsk
The lowest price a seller is currently willing to accept for a security.
Trading & Market StructureBid-Ask Spread
The difference between the best available buying and selling prices.
Order TypesMarket Order
An instruction to buy or sell immediately at the best available prices.