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Primary market:
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Here are two possible definitions of primary market:
- The London stockmarket could be described as a primary market. Its function is not as you may think, a gambling den for speculators, but a place where money is raised by companies to pay for expansion or pay off existing investors.
- In the futures markets, the primary market is the main underlying market for the financial instrument on which the futures contract is based.
See Also: Online share dealing service Stockmarket Centre
Last Updated: February 2008 © Moneyextra.com
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