Abstract

A stock market is a market in which stocks are bought and sold. It is also called industrial securities market, because it is the market for the trading of company stocks i.e. corporate securities; both those securities listed on stock exchange as well as those only traded privately. The term ‘Stock Market’ is often used as synonymous to ‘Stock Exchange’. But there is a difference in the two terms. Stock exchange is a corporation in the business of bringing buyers and sellers of stocks together. It is a major part of stock market, but not whole of it. Because a stock market besides stock exchanges also includes the market for new issue of securities. Thus the stock market can be divided into two constituents as follows: - 1. Primary Market or New Issue Market 2. Secondary Market or Stock Exchange

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