What is a Stock Market?

It is a place where regular activities of buying, selling, and issuance of shares of publicly-held companies take place. In the stock market, one can also trade in financial instruments such as derivatives, bonds, mutual funds, along with shares of a listed company.

 

A stock exchange is the meeting place for buyers and sellers for trade. In India, the prime stock exchanges are the National Stock Exchange and the Bombay Stock Exchange.

One can trade in either one of the two market segments: the primary market and secondary market.

 

Primary market:

 

The primary market is where a company