What is Share Market-

You must have heard about the terms like- Stock Market, Share Market or Equity Market in your day -to -day life. So, a question might arise in your mind that what is this Stock Market or Share Market? So, let’s us discuss about Stock Market or Share Market- So, when we talk about terms like Stock Market ,Share Market and Equity Market, all three means the same thing.

Share Market-

We can describe the Stock Market ,that, it is a type of platform that brings buyers and sellers in one place and facilitated them to perform trade with publicly listed share companies during the market hours. So, we can say that it is a place where trading is done in a very systematic format or way.

Types of Share Market-

The Stock Market is classified into two types:-

1. Primary Market
2. Secondary Market

About Primary Market-

Primary Market:- Primary Market is the place where shares and securities of companies are issued for the first time.It involves the process of IPO(Initial Public Offering). Primary Market is a place where shares are sold to the public by a private or public company.

Functions of Primary Market-

The following are the some functions of Primary Market:-

• In Primary Market new securities are sold.
• In Primary Market the securities are issued by the companies.
• Primary Markets has no specific geographical place or locations.
• It is related IPO which stands for Initial Public Offering.
• It is also called NIM means New Issue Market because it is the market where the securities are sold for the first time.

About Secondary Market-

The Secondary Market is a type of platform or place where investors buy and sell securities that they already own. Instead of the entity issuing the investment in the Secondary market , they exchange it with another. Some examples of Secondary Market are- NSE- means National Stock Exchange. BSE- means Bombay Stock Exchange.

Functions of Secondary Market-

The following are the some functions of Secondary Market:-

• It’s primary function is to provide liquidity to the investors.
• It provide transparency also.
• In Secondary Market securities are not issued directly by the companies to the investors.
• In this type of market buying and selling of securities are done through brokers.
• In Secondary Market only listed companies are allowed.

Advantages of Stock Market-

The advantages of Share Market are as follow-

• The stock market allows effortless entry and exit through the purchase and sale of company’s shares. So, it facilitated easy entry and exit level.
• High returns in short period of time.
• Capital growth is the priority.

Disadvantages of Stock Market-

The disadvantages of Share Market are as follow-

• Sometimes investors may suffer from loss, it involves risk of financial loss. So, it is risky.
• It’s registration process takes a little longer time.
• There is no fixed return and no fixed time of return.

Conclusion-

Share Market– Share Market became a debatable topic in today;s world. There are various types of companies who involves in the trading activities of such types. As we know that every coin has two sides means every thing has two aspects of their own, one is positive and other is negative. So, investing in Share Market can be risky so, please reads all the policies and documents very carefully. Reads the company’s Terms and Conditions carefully. Read all the information and policies of the Share Market is very important before investing.

FAQs on Share Market-

Q1-Are the Share Market and Stock Market the same thing?

Ans-Yes.

Q2-What is the full form of NIFTY?

Ans-National Stock Exchange FIFTY.

Q3-What is the full form of Sensex?

Ans-Sensex stands for Sensitivity Index.

Q4-What is BSE?

Ans-BSE stands for Bombay Stock Exchange. It is one of the example of Secondary market.

Q5-What is of SEBI?

Ans-SEBI stands for Securities and Exchange Board of India. It is a regulatory body that looks into issues like- which companies should be listed on the stock exchange.