what is the meaning of primary market

primary market is the part of  capital market that deals with new issue of securities
 Companies, governments or public sector institutions can obtain bonds through the sale of a new stock or bond issue
main features of the primary market is that

• This is the market for new long term equity capital. The primary market is the market where the securities are sold for the first time. Therefore it is also called the new issue market 
• In a primary issue, the securities are issued by the company directly to investors.
• The company receives the money and issues new security certificates to the investors.
• Primary issues are used by companies for the purpose of setting up new business or for expanding or modernizing the existing business.
• The primary market performs the crucial function of facilitating capital formation in the economy.
• The new issue market does not include certain other sources of new long term external finance, such as loans from financial institutions. Borrowers in the new issue market may be raising capital for converting private capital into public capital; this is known as "going public."
• The financial assets sold can only be redeemed by the original holder.

 this is very highly sentimental market, risky market, and unpredictable market,

IPO : initial public issue

   when any company wants to increase their capital gain so the company go to the public so that process called the IPO