Which market involves the selling of new securities by issuers?

The primary market is where new securities are issued and sold for the first time by the issuers, typically corporations or governments seeking to raise capital. In this market, the initial public offering (IPO) of stocks or the issue of new bonds occurs, allowing investors to purchase these securities directly from the issuer. This process is crucial as it helps companies and government entities obtain funding for various projects or initiatives.

The primary market is distinct from other markets, such as the secondary market, where previously issued securities are bought and sold among investors rather than directly from the issuer. While the bond market and equity market refer to specific types of securities (bonds and stocks, respectively), they can include both primary and secondary market transactions. However, the foundational activity of selling new securities is specifically characteristic of the primary market.