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Finance: What is Primary Market? 3 Views
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What is the primary market? Hit play to find out.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Bonds
- Terms and Concepts / Credit
- Terms and Concepts / IPO
- Terms and Concepts / Tech
- Terms and Concepts / Trading
Transcript
- 00:00
finance a la shmoop what is the primary market all right well a primary market
- 00:08
is a market where baby stock issues go to be bought for the first time debt [Baby with stocks for heads on conveyor belt]
- 00:14
equity and other securities start trading on the primary market usually
- 00:19
courtesy of your kindly loving IPO like primary it's the first time they're
- 00:24
offered in that process for a brief moment in time the underwriter [Case of cash appears]
Full Transcript
- 00:27
sponsoring the primary market offering of those securities actually owns them
- 00:33
they then mark them up a few percent and turn around and sell them to the public
- 00:36
much like that storks brief light from the fluffy clouds in the sky to that you [Stork flying with stock]
- 00:42
know front doorstep the magic act that created a legal and Farish primary
- 00:47
market was the 1933 Securities Act which essentially regulated the process for [Securities Act appears on table]
- 00:52
how companies and banks offer new shares to an unwitting baby innocent public
- 00:57
after that offering those securities then trade on what is called the
- 01:01
secondary market clever naming their regulated by the also cleverly named
- 01:06
Securities Act of 1934 all of this was done to protect investors who were [Men wrestling]
- 01:11
wrestling greed and fear and ignorance and yes this IPO essence really crapped
- 01:17
out
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