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Primary shares

What are primary shares?

Primary shares refer to newly issued shares by a company for sale to investors. The proceeds from the sale of primary shares directly benefit the company, often used for growth and expansion.

When a company issues primary shares, it increases the total number of shares outstanding. This can dilute the ownership stake of existing shareholders, but it can also provide the company with new capital for operations, acquisitions, debt repayment, or other corporate activities. Primary shares are often issued during an initial public offering (IPO) or a follow-on offering.

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