Explain the difference between primary distribution and secondary distribution as described in the Investment Banking chapter.

Primary distribution involves the sale of previously unissued shares by a corporation, with proceeds going directly to the issuing corporation. In contrast, secondary distribution refers to the sale of shares that are already outstanding, where the proceeds go to the selling stockholders rather than the corporation.

In primary distribution, a corporation sells new shares that have not been issued before, which allows it to raise capital directly for its business needs. Secondary distribution, on the other hand, involves the sale of shares that were previously issued and held by existing shareholders, such as corporate officers or investors. The key distinction lies in the source of the shares being sold and the destination of the proceeds from the sale.