A market for new issues of securities where buyers (investors) deals directly with sellers (issuers). In a primary market, the buyer acquires a security from the original issuer, without resorting to an intermediary, and the sale proceeds go directly to the issuer. Shares sold by a company to an underwriter in an initial public offering (IPO) are exchanged on the primary market. An initial public offering involves a privately held company selling stock to the investing public for the first time. In a primary market, private issues and rights issues are also made. By nature, the primary market has no physical presence.