Primary Distribution

Primary distribution - Primary distribution is the original sale of stock, from company to the shareholders. The proceeds of the sale of stock goes directly to the company. It is opposite to secondary distribution, as the shareholder in that case offers stock for sale and the proceedings of that sale will go directly to the shareholder. The primary distribution is usually effecting the financial status of a company in order to make investments in their products possible. Governments work with primary distributions too, in order to get funds beside taxes, to invest into the country, or to create a better balance.