The start of something. The Big Bang. Like the time you met that cutie at a party...and now you're married with four kids.
In finance, we're talking about loan or mortgage origination. You walk into a bank and start filling out some forms. They take you through the process, getting you to hand in all the pertinent paperwork about your finances, checking your credit score, getting the contracts ready and all the other documents you need to review and sign.
Once you get the loan (assuming you get approved), the originator might not keep it. They could sell your loan on the secondary market to another financial institution, who assumes the risk of default and receives the payments from that point forward.
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Finance: What is a primary offering, and...29 Views
finance a la shmoop what is a primary offering and what are primary shares all
right people let's start with the primary offering it's pretty much just
an IPO or initial public offering of stock that's primary and hello 1933 Act [The 1933 securites act is slid onto a desk]
that's what gave rise to all the regulations around primary offerings its
original shares virgin ones in fact now being offered for the first time to an [Someone holding 'extra virgin stock']
investor public primary offering that's what it is
but primary shares also come from private companies like a venture capital [Sign for a venture capital company]
company might buy primary shares in a b round from whatever.com as that company
funds its growth now once a company is already public its shares will have
traded back and forth in many different hands over time those would be called [Secondary shares stamp]
secondary shares and hello 1934 Act which set the regs all around
secondaries so yeah primary 1933 secondary 1934 and well that's pretty
much it as long as you can count to two this one's a pretty easy concept to
would wrap your head around.. primarily.. [Woman looks confused]
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What is an IPO? IPO stands for initial public offering. These are used when a company decides to go public; meaning people can buy shares of the co...