Share Market, Main components and Functions of the Stock Market.
Share Market, Main components and Functions of the Stock Market The share market or stock market plays a important role in the economy. It allows companies to raise capital and provides investment opportunities to individuals. What is the Share Market? The share market is a place where the shares or stocks of companies are bought and sold. It is a financial market where by purchasing shares, investors gain partial ownership of the company. The stock market is also known as a stock exchange. The main purpose of the stock market is to provide an opportunity to companies to raise capital and give fair chance to the investors to earn profits from their investments. It is a liquid market, where investors can easily buy and sell their shares and get their money. The stock market has two main components: Primary Market : It is the market where companies issue shares for the first time through Initial Public Offerings (IPOs) and allows businesses to raise capital for gro...