Learn about the new issue market: You've probably heard of the Primary and Secondary markets. The primary market is also known as the new issue market. But, exactly, what is the new issue market?

This article will go into detail about what the new issue market is. Continue reading to learn more about this market.

New Issue Market Definition
A new issue market is one in which a stock or bond is sold to an individual for the first time. This new issue could be an Initial Public Offering (IPO) or a new issue floated by a company that has previously floated several issues. The new issue market is a market that focuses on these new issues. The secondary market, on the other hand, deals with existing stocks and bonds. The process of offering shares of a private company to the public for the first time in a new stock issuance is known as an IPO. Simply put, the primary market is also known as the new issue market because it is where securities are sold for the first time.

Now that you have a good understanding of what the new issue market is all about, let's take a look at three bodies that are directly involved in this transaction. The entire transaction in the new issue market works like this: a company raises funds through an IPO by selling some of its shares to interested investors. Read more on: What is New Issue Market?