There are two types of Market :
1.Primary market: A primary market refers to any market where new shares of stock are
sold. A company enters primary markets to raise capital. If the company is selling shares
for the first time, it is called an Initial Public Offering (IPO). The company thus becomes
public.
2.Secondary market: Once new securities have been sold in the primary market, these
shares are traded in the secondary market. This is to offer a chance for investors to exit an
investment and sell the shares. Secondary market transactions are referred to trades where
one investor buys shares from another investor at the prevailing market price or at whatever
price the two parties agree upon.
Normally, investors conduct such transactions using an intermediary such as a broker,
who facilitates the process
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