What is a primitive stock?
Primitive stock is a kind of stock, which is generally issued only before the company goes public. Before the company goes public, in order to develop rapidly and obtain development funds, it can sell the original shares to raise funds from the public. The value of original shares depends on the growth potential of the company. After listing in the stock market, investors who invest in original stocks get much higher return on investment than other types of investments. But the risk is that if the company can't go public normally, the high valuation of the original shares will be difficult to be recognized by other investors. The original shares are different from the normal shares and can be traded in the securities market.