Types of Share Market
There are two types of share markets.
- Primary Share Market
- Secondary Share Market
Primary Share Market
The company's shares are issued for the first time in the Primary Share Market. Whenever the company is first listed in the Share Market and there are stock issues, then all this happens in the Primary Share Market only.
When the company sells shares for the first time, it is called Initial Public Offering or IPO. After which the company becomes public. While going for IPO, the company has to give information about itself, its Financials, Promoters, and its Business, Stock.
Secondary Share Market
Trading is done by buying and selling shares of already-listed companies in the Secondary Share Market.
When we talk about investing money in Normally Share Market. We are talking about the Secondary Share Market only.
A stock or share is priced in the secondary share market itself and is bought or sold with profit or loss.
