The primary market is the segment of the capital market responsible for the first-time issuance and sale of equity-based securities by the issuer. Initial public offerings (IPOs), private placements, preferred allotments, and rights issuances are common ways for primary market stock to be issued. Primary markets are typically the first source of new security, which is then sold to enterprises, governments, and other parties in order to obtain debt- or equity-based financing. The secondary market, on the other hand, is typically made up of traditional stock exchanges such as the New York Stock Exchange (NYSE) or NASDAQ.
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