- CFA Exams
- 2025 Level I
- Topic 5. Equity Investments
- Learning Module 1. Market Organization and Structure
- Subject 6. Primary Security Markets
Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Subject 6. Primary Security Markets PDF Download
The primary markets are those in which new issues of bonds, preferred stock, or common stock are sold by government units, municipalities, or companies to acquire new capital.
- New issue.
- Key factor: issuer receives the proceeds from the sale.
There are two important rules in the primary capital markets:
New stock issues are divided into two groups:
A rights issue is an option that a company can opt for to raise capital under a secondary market offering or by using a seasoned equity offering of shares to raise money. It is a special form of shelf offering or shelf registration. With the issued rights, existing shareholders have the privilege of buying a specified number of new shares from the firm at a specified price within a specified time.
Government bond issues are sold at Federal Reserve auctions.
User Contributed Comments 0
You need to log in first to add your comment.
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
My Own Flashcard
No flashcard found. Add a private flashcard for the subject.
Add