Legal Definitions - primary offering

A primary offering is when a company issues new securities, such as stocks or bonds, to the public for the first time. This type of offering takes place in the primary market, where the company raises capital by selling its securities directly to investors.

For example, if a company decides to go public and sell shares of its stock for the first time, it would be considered a primary offering. Another example would be if a company issues new bonds to raise money for a specific project or expansion.

Primary offerings are important for companies because they provide a way to raise capital and fund their operations or growth plans. They also give investors the opportunity to invest in a company at an early stage and potentially benefit from future growth.