Friday, September 12, 2008

Stock Markets?

A stock market is a market for the trading of company stock/ shares, and derivatives. Market is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc. It also enables corporates, entrepreneurs to raise resources for their companies and business ventures through public issues.

    1. Primary Stock markets:
      The primary market is that part of the capital markets that deals with the issuance of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers. In the case of a new stock issue, this sale is an initial public offering (IPO)


b. Secondary Stock markets:
The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering. The secondary market is where you can purchase securities from the seller as opposed to the issuer of such a security.

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