Which market specifically deals with the initial issue of new securities?

The primary market is the segment of the financial market where new securities are issued and sold for the first time. In this market, corporations, governments, and other entities can raise capital by offering shares of stock or bonds to investors. When a company decides to go public through an initial public offering (IPO), it issues new stock shares to the public for the first time in the primary market. Investors purchasing these securities are directly funding the issuing entity's operations or projects.

Understanding the nature of the primary market is crucial for grasping foundational concepts in finance and economics because it serves as the initial access point for capital and investment into various ventures. This contrasts with the secondary market, where existing securities are bought and sold among investors. While the bond market and commodities market refer specifically to types of securities or assets, they do not encompass the broader initial issuance of new securities which is characteristic of the primary market.