Stock Market generally divided into two segments
Primary market and Secondary market.
The primary market is the market in which investors have the first opportunity to buy a newly issued security.The primary market is not a physical place, it is merely refers to a situation where the action is not among investors inter-se but is between a company and the investors.Eg. Initial Public Offer (IPO), it includes right issue.
When a company needs an extremely large capital to run its business operations it cannot fund it all by itself.Hence it needs shareholders, which can be achieved only through primary market.
Primary market and Secondary market.
The primary market is the market in which investors have the first opportunity to buy a newly issued security.The primary market is not a physical place, it is merely refers to a situation where the action is not among investors inter-se but is between a company and the investors.Eg. Initial Public Offer (IPO), it includes right issue.
When a company needs an extremely large capital to run its business operations it cannot fund it all by itself.Hence it needs shareholders, which can be achieved only through primary market.
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