Businessmen forms companies and introduce their ideas and collect capital from people to realize it. They gives share in capital to the public in the form of equity through IPO. This is called as a primary market.
The shareholders can not demand refund of their capital as it is already invested in the business by the company. So, a secondary market is needed to trade the shares.
The secondary market is in the form of stock exchanges like BSE, NSE.
Stocks are traded in these markets.
SEBI (Securities and Exchange Board of India) is an autonomous body of Govt. of India to regulate the securities market in India and to protect the interests of investors.
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