3. So what primary market means in stock trading?

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It's a market or channel for fresh capital or funds or cash. Most companies need permanent flow of cash to meet the various requirements of the company over longer periods of time and the funds they borrow from financial institutions such as banks has got a limit. So, companies need to have alternative means for fresh flow of cash or funds. This is where, a primary market plays a vital role. They provide the perfect channel for corporates or companies to raise enough capital by making the public or people participate in the generation of cash for the company. The initial participation of the public comes through the primary market in the form of public issues or Initial public offering, as it is generally termed. Now, a public issue is nothing but, a means by which a company or a corporate invite the people to take part in their quest for raising fresh capital or money. Inturn for the participation of the public, the company offers them incentives in the form of dividends( part of profits made by the company). The next discussion deals with the brief description of the two ways in which a company cud raise capital from the primary market....