If a company needs large capital and if they need a money, they come to market to sell the stocks to invest money in their businesss, if any public interested can bought the shares of company and become a share holder and profit made will be splited into public.
But if a investor needs to sell his existing shares , then he need a secondary market by their stock market comes into picture.

1 Comment
  1. vignesh 6 years ago

    Hi sir,
    This will be the appropriate answer for the question What is Dividend, Bonus and Split? :
    Dividend – profit share given by the company to it share holder, it is the company decision to give out the profit or to reinvest which increases the share value
    Bonus – profit share given by the company when there is is additional profit
    Split – splitting the share to decrease the price of each share.

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