Primary shares explained

In an equity offering, primary shares, in contrast to secondary shares, refer to newly issued shares of common stock.^[1] Proceeds from the sale of primary shares go to the issuer, while those from preexisting secondary shares go to shareholders.^{[2] [3]}

Most initial public offerings (IPOs) have a mix of both primary and secondary shares.^[4]

References

1. Book: https://books.google.com/books?id=N7offzx9PwIC&q=Primary+shares&pg=PT156. The Value Mindset: Returning to the First Principles of Capitalist Enterprise. Stern. Erik. Hutchinson. Mike. John Wiley & Sons. 2011. 978-1-118-16091-6. Hoboken, NJ. en. Chapter 20: Initial Public Offering. 2004.
2. News: Equity Capital Market (ECM) - Corporate Finance Institute. Corporate Finance Institute. 2018-01-09. en-US.
3. Book: Geddes, Ross. IPOs and Equity Offerings. Elsevier. 2003. 978-0-08-047878-4. Elsevier Finance. Oxford and Burlington, MA. 7. en.
4. Book: Khurshed, Arif. Initial Public Offerings: The mechanics and performance of IPOs. Harriman House Limited. 2011. 978-1-905641-15-4. Petersfield, UK. 129. en.