What is stock market?

 Stock Market:

             Stock market or equity market or share market is the place where buying or selling of shares of public listed company takes place. Shares are either traded through stock exchanges or over -the - counter markets.

Types of Stock Market:

                The stock market can be divided into two sections: Primary Market and Secondary Market.  In primary market, company raised capital by issuing shares to public. Shares are issued to public by company through Initial Public Offerings (IPO).

    Once the new stock has been sold in primary market, they are traded in secondary market. Trade in share market means transfer of share from seller to buyer. A buyer bids specific price for stock as well seller ask specific price for stock. In other words, buyer put purchase order of stock at specific price and seller gives sale order of stock at specific price. When the bid and ask prices match, sale order and purchase order will be executed. If there are multiple bidders or askers at a given price, the transactions will be transacted upon first come first serviced basis.