Definition
Primary shares are newly issued shares of a company that are sold to investors in an offering, typically during an initial public offering (IPO) or private equity round.
Related Services
Investment banking, securities issuance, and financial advisory services assist companies in issuing primary shares to raise capital and expand their shareholder base.
Problem and Application
Issuing primary shares dilutes existing shareholders� ownership but provides the company with essential capital for growth and expansion.
Conclusion
Primary shares are a key tool for raising capital and supporting business growth, but businesses must carefully manage the impact on shareholder equity.
