What Are The Different Types Of Equity Market?
Hi @jaydave0000 ! There are two types of equity market- primary and secondary.
- The primary market is where the company sells its shares to the public for the first time through IPO. An important point to note: here the transaction is between the issuer (company) and buyer. The equity can be raised in the primary market by any of the following ways-Public Issue, Rights Issue, Private Placement, Preferential Allotment.
- A secondary market is a place where the securities are traded after the company has sold its securities in the primary market. Here, you can buy a share from a seller and the stock exchange or broker acts as an intermediary between two parties. For example- BSE, NSE etc.
I hope it helps. Cheers!
Equity Market is a market in which shares are issued and traded. Also known as the stock market, it is one of the vital areas of the market economy because it gives companies access to capital and investors a slice of ownership in a company with the potential to realize gains based on its future performance.
Equity Market consists of Primary Market & Secondary Market
The primary market is also called new issues market as securities are issued to the public for the very first time.
The secondary market is also known as Stock exchanges which are an important part of the capital market. It is an organized market place where securities are traded.
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