All primary market transactions involving a security must involve the security's issuer.
What is a primary market?
Only those transactions in which the issuing entity issues securities for the first time and sells them to investors are referred to as "primary market" transactions.
Secondary market transactions are upcoming sales of the same securities.
One illustration of a primary market is an initial public offering, or IPO.
Investors have the chance to purchase securities from the bank that handled the first underwriting for a certain stock through these deals.
When a private firm first sells stock to the public, it conducts an initial public offering (IPO).
