Investing for Beginners , investing

Primary markets are the markets, in which new capital investments are raised. The perfect example of primary market is an IPO, but even if it is not the first issue of securities for the company, it still counts to primary market as long as is a new issue of securities. Many say that primary market is more important than secondary market, but none of them could survive properly without another.

It is interesting question whether is better to invest trough primary or the secondary market. Primary market can offer for investor some opportunities that are unavailable in secondary markets yet, and this could award higher return on investment. However, investments in secondary market have higher liquidity and investor can chose from wider spectrum of investments.