It refers to the collection of the exchanges and markets where the trading and issuing of equities (stocks with regards to publicly held companies), other sort of securities, bonds etc either via over the counter markets or exchanges. It is also referred to as equity markets, which is one of the most essential components for the free market economy, as it is providing companies with access to capital in exchange for giving investors an ownership. They could be split into two major sections mentioned as primary and secondary. The primary market is referred where the new issues are first sold via IPOs (Initial Public offerings). Institutional investors generally purchase most of the shares for the investment banks, the worth of the company going “Public” and the amount of shares; determine the cost of the IPO. Stocks with regards to larger companies are traded via exchanges, entities which brings together sellers and buyers in organized manner. Read here all stock market related news/article and invest your money in smart investment.
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