Stocks are shares issued by a company to an investor through an IPO.This primary allotment is done in primary market. The allotted shares can be subsequently traded in a secondary market called stock market . Buyers and sellers of shares meet on this platform virtually through online and trade.The stock market is a well oiled regulated market overseen by SEBI, a regulatory authority of the Govt.. The SEBI also processes the IPO application before its issue. All trades are registered in the stock market. the identity of traders as well as owners are known and this helps the company to identify the latest owner and credit all benefits , the identity of the traders also helps SEBI to track malpractice.Shares are stored in dematerialised form , All transactions are online. Dividends,bonuses and stock splits are automatically credited online to respective holder accounts. NSE and BSE are the secondary market platforms available now.
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