BUYING SHARES THROUGH THE PRIMARY MARKET

The primary market is the market where companies seeking for fresh funds for the first time access.These companies usually spend a lot of money on advertisement both in the print and electronic media to woo people to buy shares in their company.It could be an Initial public offering ,Offer for sale, Private placement,rights issue.t.c
An investor who buys shares through the primary market is issued a share certificate.A share certificate is a proof of ownership in a company,though we now have e-IPO .e-IPO is a recent development.An investor who chooses the option of the e-IPO will have his CSCS account credited directly with the number of shares he purchases on the primary market.This will save the investor of the stress of demobilizing his share certificate.
One of the unique features of buying shares through the primary market is that it is commision free.All a prospective investor needs to do is to collect a prospectus from his stockbroker or any bank close to him.He will then fill out the form and submit it to his broker or banker with the amount of money for the number of units he applies for,period.