Answer: Primary market is the market for new issues of securities.
It is also called the new issue market. In it, companies raise fresh capital by issuing new shares, debentures and bonds directly to investors through an IPO, FPO, rights issue, private placement or preferential allotment. The funds go directly to the issuing company, so it helps capital formation. Securities are bought only once from the issuer; their later buying and selling takes place in the secondary market (stock exchange). Primary market issues are regulated by SEBI.