On the primary market, securities are placed by the issuer, and this is where it receives funds. All subsequent transactions between investors occur on the secondary market and do not affect the volume of capital attracted by the company.
Placement methods vary: public or private subscription, auction for government securities issuance, collection of bids followed by price determination. What they have in common is that the issuer sets the terms, not the market.
The pricing feature involves the absence of an external reference point. When a new issue is placed, there are no quotes yet, and valuation is based on disclosed information and comparable instruments already trading on the market.
For investors, the primary market provides an opportunity to acquire securities in the desired volume without affecting the price, which is especially important with low secondary trading liquidity. Settlement following placement goes through an established procedure, and securities transfer takes time determined by the clearing cycle.