Primary Listing

  

Categories: IPO

You have your main house where you live most of the time. You also have a summer cabin down by the lake, where you spend a lot of time between the beginning of June and the end of August. In addition, you’ve got a timeshare in Colorado, where you spend a couple of weeks every winter. And you spend every Easter at your sister's place in Florida. You spend a lot of time moving around. But your primary residence is still the main house.

A primary listing works like that, only for publicly traded stocks. It represents the main stock exchange where shares of a particular company trade. It may be listed on multiple exchanges (both the London exchange and the NYSE). But one of those represent the primary listing.

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Finance: What is Primary Market?3 Views

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finance a la shmoop what is the primary market all right well a primary market

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is a market where baby stock issues go to be bought for the first time debt [Baby with stocks for heads on conveyor belt]

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equity and other securities start trading on the primary market usually

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courtesy of your kindly loving IPO like primary it's the first time they're

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offered in that process for a brief moment in time the underwriter [Case of cash appears]

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sponsoring the primary market offering of those securities actually owns them

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they then mark them up a few percent and turn around and sell them to the public

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much like that storks brief light from the fluffy clouds in the sky to that you [Stork flying with stock]

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know front doorstep the magic act that created a legal and Farish primary

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market was the 1933 Securities Act which essentially regulated the process for [Securities Act appears on table]

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how companies and banks offer new shares to an unwitting baby innocent public

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after that offering those securities then trade on what is called the

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secondary market clever naming their regulated by the also cleverly named

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Securities Act of 1934 all of this was done to protect investors who were [Men wrestling]

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wrestling greed and fear and ignorance and yes this IPO essence really crapped

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out

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