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Share Market

The share market, also known as the stock market, is a public marketplace where shares of publicly traded companies are bought and sold. It is a platform where investors can buy or sell shares of companies that are publicly listed on an exchange.

The value of the shares traded on the share market is determined by the supply and demand of buyers and sellers, with fluctuations in the market driven by factors such as economic conditions, company performance, and investor sentiment.

By buying shares in a company, investors become part owners of that company and may benefit from its financial success through dividends or capital gains if the value of the shares increases. However, share prices can also fall, and investors may lose money if they sell their shares for less than they bought them.

Type of Stock Market?

There are primarily two types of stock markets:

  1. Primary market: In the primary market, companies issue new shares to the public through an initial public offering (IPO). The primary market is where companies raise capital by selling shares directly to investors for the first time. In the primary market, investors can buy shares at the offering price, which is determined by the company and its underwriters.
  2. Secondary market: In the secondary market, investors buy and sell shares of publicly traded companies on stock exchanges like the New York Stock Exchange (NYSE), NASDAQ, and others. The secondary market is where investors trade existing shares of stock with other investors, and the price of the shares is determined by the supply and demand of the market.

Besides these two primary types, there are also other specialized markets, such as over-the-counter (OTC) markets, which are used to trade securities that are not listed on a formal exchange, and futures markets, which trade contracts for the future delivery of commodities or financial instruments.

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