Types of Share markets: There are two types of share markets in the country:
Primary share market: This is the market where companies or businesses register themselves. Companies enter the primary share market to raise funds by offering their stocks. When a company registers itself in the primary share market and offers to sell its shares for the first time, it is known as Initial Public Offering (IPO). Here, you must understand that shares are a physical representation of a small value of the company, and owning the shares means that you are a part-owner of the company.
Secondary share market: The actual trading of a company’s shares occurs in the secondary share market. After a company’s share is listed on a stock exchange, investors can engage in trading, i.e. the sale or purchase, on prices that are governed by market movements. You can trade in shares in the secondary share market only through a broker.
Hi,
In response to your question
In terms of similarities – Buying and selling happens, price depends on demand and supply. in terms of difference – no physical product is involved, it is a regulated market.
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