Article

Stock Market
December 03 , 2012

Stock market is an important constituent of the capital market. Equity and equity products are traded in stock market. the term stock market does not refer to a physical market. Primary issuers of shares (listed companies), investors and financial intermediaries make up the stock market. Stock markets play crucial role in an economy because they mobilize funds of investors to businesses that need them for growing and expanding.

When companies raise funds from public investors for the first time through IPOs they make the primary market. Consequently when listed shares are traded amongst investors they create the secondary market. Transactions in stock market are facilitated through stock exchanges.

Besides issuers and investors there are a number of financial institutions in the stock market that work as intermediaries between the two.

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