What Is a Primary Account Number? The term primary account number refers to a 14-, 15-, 16-, or even up to 19-digit number generated as a unique identifier designated for a primary account. Primary account numbers are also called payment card numbers as they are found on payment cards like credit and debit cards. This
What Is a Primary Beneficiary? A primary beneficiary is an individual or organization who is first in line to receive benefits in a will, trust, retirement account, life insurance policy, or annuity upon the account or trust holder’s death. An individual can name multiple primary beneficiaries and stipulate how distributions would be allocated. Key Takeaways A
What Is a Primary Dealer? A primary dealer is a bank or other financial institution that has been approved to trade securities with a national government. In many countries, primary dealers are the only entities who can make a bid for newly-issued government securities. A primary dealer in the U.S. may thus underwrite new government
What Is a Primary Distribution? In finance, the term primary distribution refers to the original sale of a security issue to the investing public. One of the most well-known examples of a primary distribution is the initial public offering (IPO), in which a new company sells its shares for the first time. A primary distribution
What Is a Primary Exchange? A primary exchange is the most important stock exchange in a given country. Often they have a storied history, a catalog of primary listings from top companies, an inventory of important foreign listings, a large total market capitalization, and significant trade value. Key Takeaways A primary exchange is the largest
What Is the Primary Insurance Amount (PIA)? The primary insurance amount (PIA) is the result of a calculation used to determine the Social Security benefits amount that would be paid out to an eligible retiree at full retirement age. Key Takeaways The primary insurance amount (PIA) is the amount of Social Security benefits paid to a
What Is a Primary Listing? A primary listing is the main stock exchange where a public company’s stock is traded. For some companies, it is crucial to have a prestigious primary listing on the New York Stock Exchange (NYSE), Nasdaq, the Hong Kong Stock Exchange, the London Stock Exchange, and the Tokyo Stock Exchange as this lends credibility
What Is a Primary Market? A primary market is a source of new securities. Often on an exchange, it’s where companies, governments, and other groups go to obtain financing through debt-based or equity-based securities. Primary markets are facilitated by underwriting groups consisting of investment banks that set a beginning price range for a given security
What Is a Primary Offering? A primary offering is the first issuance of stock from a private company for public sale. The first public sale of stock is called an initial public offering (IPO). It is a means for a private company to raise equity capital through financial markets to expand its business operations. A primary offering can
What Is Primary Recovery? Primary recovery, also known as “primary production,” is the initial stage in the extraction process for oil and gas. In crude oil production, various methods of primary recovery can be used. Typically, the primary recovery process involves placing increased pressure on the oil within wells in order to force oil to
