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Like several other goods which require a market place for buyers and sellers to come together, shares too need a bazaar where they can be sold and bought. The bazaar where shares are sold in either a primary market or a secondary market. Primary market refers to the business done through initial public offers during which shares are offered for the first time to public or to existing shareholders on right basis. The latter, is to existing shareholders either on priority or through a private placement when shares are selectively sold to limited number of investors. New equity shares are initially offered and issued through the primary market and subsequently they are traded through the secondary market. The latter consists of a network of stock exchange.

Posted on: 08-Jun-2020 | Posted by: NIFM | Comment('6')
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