The stock market refers to the collection of markets and exchanges where the issuing and trading of equities or stocks of publicly held companies, bonds, and other classes of securities take place. … It provides companies with access to capital in exchange for giving investors a slice of ownership.
The stock market consists of two main sections, the primary market, and the secondary market. The primary market is where new issues are first sold through initial public offerings (IPOs). Institutional investors typically purchase most of these shares from investment banks.