A major market, also known as a primary market, is a financial market where new securities, such as stocks and bonds, are issued and sold for the first time. In other words, it is the market where the issuer of the securities directly sells them to the public or institutional investors, and the proceeds of the sale go to the issuer.
The major market is where companies go to raise capital by issuing new stocks and bonds. The sale of new securities is typically facilitated by investment banks, which act as intermediaries between the issuer and investors. In the case of stocks, the offering may be made through an initial public offering (IPO), while in the case of bonds, the offering may be made through a debt offering.
Some examples of major markets include the New York Stock Exchange (NYSE), Nasdaq, and London Stock Exchange. These markets are highly regulated, and securities listed on these markets must meet certain disclosure requirements and other standards before they can be traded.
Once securities have been issued and sold in the major market, they can then be traded in the secondary market, such as through stock exchanges or over-the-counter markets. The secondary market is where investors buy and sell securities among themselves, rather than buying directly from the issuer.