Stock market is place where buying and selling of shares of company takes place. There are two types of stock market ie primary and secondary. Primary market is IPO ie Initial Public Offering. Company who needs to raise funds from public for the first time apply the rout of IPO. Company files necessary papers with the SEBI. Where SEBI approves the IPO if it is in accordance with the norm. Public issue remains open for few days where interested buyers can bid for the shares. At the end allotment of the shares done by the company and shares are being allotted or refunded as the case may be. In secondary market free trading of shares takes place between interested buyers and sellers of shares. SEBI is governing authority of stock market to protect interest of the investors. Board of directors of the company manages companies business where owners are different from managers. BSE and NSE are major stock exchanges of India which provide trading platform.
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