Introduction
The primary market is the beginning.
A company can use an initial public offering to raise capital by offering shares to public investors and seeking a listing on an exchange.
Before the listing
Offer documents describe the business, risks, financial history, offer structure and proposed use of proceeds.
During application
Investors follow the available application process and consider whether the offer fits their own research and risk tolerance.
After listing
The shares trade in the secondary market, where price reflects changing expectations, liquidity and information.
Conclusion
A new listing is not automatically a good investment. Research the business and valuation beyond the launch moment.
Learn about IPOs ↗