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What is stock market?
A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities.

Stock market is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc.

Stock markets also enable corporates, entrepreneurs to raise resources for their companies and business ventures by issuing shares of their business to public.

Primary 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.  In the case of a new stock issue, this sale is an initial public offering (IPO)

      What are the types of issues in primary market?
      Primary market Issues can be classified into four types.
         1. Initial Public Offer
         2. Follow on Offer
         3. Rights Issue
         4. Preferential Issue
 

Secondary markets:


      The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering. In the secondary market, securities are sold by and transferred from one investor or speculator to another.

      The secondary market is where you can purchase securities from the seller as opposed to the issuer of such a security. Hence securities that are initially issued in the primary market by companies are traded on the secondary market.

      The secondary market comprises of two broad segments viz. Equity and Debt. Equity shares are the most widely traded form of securities. There are various ways in which equity shares are issued such as IPOs, rights issues and bonuses.
More abour Stock Markets:

A stock market is a market for the trading (buying and selling) of company stock/ shares, and derivatives. This includes securities listed on a stock exchange as well as those only traded privately.

Stock Market is a place where buyers and sellers of securities can enter into transactions to buy and sell shares, bonds, debentures etc.

A stock market is a private or public market for the trading of company stock and derivatives of company stock at an agreed price; both of these are securities listed on a stock exchange as well as those only traded privately.


The Definition

The expression ’stock market’ refers to the market that enables the trading of company stocks (collective shares), other securities, and derivatives.

Bonds are still traditionally traded in an informal, over-the-counter market known as the bond market. Commodities are traded in commodities markets, and derivatives are traded in a variety of markets.

The size of the worldwide ‘bond market’ is estimated at $50 trillion. The size of the 'stock market’ is estimated at about $60 trillion.

The world derivatives market has been estimated at about $500 trillion ‘face’ or nominal value, 30 times the size of the U.S. economy…and 12 times the size of the entire world economy. Stock or a fixed income security re



 
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