The behind-the-scenes of investment: two markets, two roles

🔹 1. The primary market: the starting point

🧠 What is it?It is the market wherecompanies or the state issue new securities for the first timeto raise funds.

💡 Simple example:When a company sells its shares to the public for the first time during an initial public offering (IPO), it is on the primary market.

🎯 Why is it useful?

• You directly help the company finance its projects.
• You are the first to hold this title.

📌 Products concerned:New stocks, new bonds, newly created mutual funds.

🔹 2. The secondary market: the place of exchanges

🧠 What is it?It is the market wherethe already issued securities are bought and sold among investorsBehind the scenes of investment: two markets, two roles

💡 Simple example:You buy a stock that someone else wants to sell. The money goes to the previous owner, not to the company.

🎯 Why is it useful?

• You canresell your shareswhenever you want (depending on liquidity).
• Youtake advantage of price fluctuationsto make (or lose) money.
• This is what makes investment "alive" and flexible.

📌 Products concerned:Listed stocks, listed bonds, shares of mutual funds available for resale.

📝 To remember:

• Primary market = buying at the source.
• Secondary market = exchanges between investors.
• The two arecomplementaryand essential for a dynamic market.