Unit 2 - 3. Markets Flashcards
1
Q
The Primary and Secondary Markets
Unit 2 - 3. Markets
A
Primary market (new issues market) is where securities are issued for the first time. Enables companies to raise capital through IPO or FPO ETC.
Secondary market where existing securities are traded between investors. These provide investors (and issuers) with liquidity.
Role of Governing Authority
- Each jurisdiction has its own governing rules for companies seeking a listing. UK has UKLA, part of FCA.
