Equity shares of companies are traded in equity markets, which are further classified
as primary and secondary market.
New issues market or
(Please refer to ‘Investments’ section for details)
This market deals with the new securities, which were not previously available to
the investing public. Primary markets are used to raise fresh capital by companies
for cash or for consideration other than the cash.
Stock exchange or
Stock exchanges are organized markets, which are used to facilitate trading in securities.
Securities that have been issued by the companies and are listed on the stock exchange
are traded. MORE>>
This is divided into two segments:
Cash Markets: The segment of the market in which securities
are sold for cash and delivered immediately. Contracts bought and sold on these
markets are immediately effective.
Derivatives: Futures contracts, forward contracts,
options and swaps are the most common types of derivatives. A transaction for which
securities can be reasonably expected to be delivered in one month or less. Though
these securities may be bought and sold at spot prices, the securities in question
are traded on a forward physical market. Derivatives are generally used to hedge
risk, but can also be used for speculative purposes.
Securities & Exchange Board of India (SEBI): The regulatory
body of the Stock markets in India.