The market where new issues of securities are initially sold to investors. It contrasts with the secondary market where existing securities are traded among investors.
A secondary market is a crucial component of the financial market where securities are traded among investors after being initially offered to the public on the primary market.
A bond issued in a primary market at a price exceeding 90% of its face value, meaning the discount does not surpass 10%. Such bonds are typically seen as less risky compared to more deeply discounted bonds.
A bond issued in the primary market that carries no equity or other incentive to attract the investor; its only reward is an annual or biannual interest coupon together with a promise to repay the capital at par on the redemption date.
