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Notes-Primary Equity Markets PDF

Primary equity markets allow institutions to issue securities to raise funds for business needs such as starting or expanding operations, paying back debt, or diluting shareholdings. Governments, private companies, and public sector firms access primary markets to issue shares and debentures to the public and institutions to raise funds.

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Shravan Venkataraman
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29 views

Notes-Primary Equity Markets PDF

Primary equity markets allow institutions to issue securities to raise funds for business needs such as starting or expanding operations, paying back debt, or diluting shareholdings. Governments, private companies, and public sector firms access primary markets to issue shares and debentures to the public and institutions to raise funds.

Uploaded by

Shravan Venkataraman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Notes: Primary Equity Markets

There are several reasons for an institution to issue securities in the primary
market:

• To provide funds for the start or expansion of business.

• To payback outstanding debt and fund it with proceeds from the issue of
equity shares.

• To dilute the ownership of a shareholding.

• To increase investor confidence and company visibility.

Governments, private sector companies, and public sector companies raise funds
by issuing securities such as shares and debentures to both the public at large and
institutional investors.

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