Equity Market
The equity market is where shares are traded, capital is raised, and stocks are offered, split into two types. The primary market involves first-time share offerings via IPOs or private placements, often over-the-counter, though exchange-traded IPOs are regulated. The secondary market is where existing shares, bonds, futures, and options are traded, typically on well-regulated exchanges. The primary market fuels company fundraising, while the secondary provides liquidity for investors. Together, they form a system connecting businesses to capital and traders to opportunities, balancing issuance and ongoing trade.
Related Terms
Foreign Portfolio Investment
Foreign Portfolio Investment (FPI) refers to investments in stocks, bonds, ETFs, derivatives, and other financial...
Arbitrage
Arbitrage is a trading strategy that exploits small price differences for a security across markets...
Delivery Trading
Delivery trading involves buying/selling a security and settling it by taking/giving delivery. Unlike intraday trading,...
Adjusted Closing Price
The adjusted closing price of a stock reflects modifications made to account for corporate actions—such...
Liquidity Risk
Liquidity risk is the chance a company can’t meet its debt obligations due to insufficient...
Annual General Meeting
An Annual General Meeting (AGM) is an event where a company's board of directors presents...
