Primary markets - financial markets, Finance Basics

Primary Markets - Financial Markets

These are markets such deal along with securities that have been issued for the first moment. The money flows directly from transferor or there saver of money to transferee as like investing person. They facilitate for their capital formation.

Economic Benefits of Primary Markets are as:

1. Raising capital for business.

2. Mobilizing savings

3. Government can increase capital through sale of Treasury bonds

4. Open market operation to effect monetary policy of the government that is control of excess liquidity in such economy

5. For direct foreign investment, it is a vehicle.

Posted Date: 2/1/2013 12:36:19 AM | Location : United States

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