• The most common way of buying/selling shares in stock market is via trading through exchanges, where buyers and sellers meet and decide on a trading price. Through a stockbroker you can buy shares from existing investors who wish to sell them and vice versa.

    There are also some exchanges which are physical location known as trading floors, where often trading is carried out. You might have come across in pictures where traders are yelling, waving up their arms wildly in air. The other means of exchange is virtual and is carried out via a network of computers where trading can be done electronically.

    The aim of a stock market is to simplify the exchange of securities between buyers and sellers which can in turn reduce the risks associated with investing. So a stock market can be considered as a super-sophisticated market providing a linkage between buyers and sellers.

    It’s important to have a sound knowledge between Primary and Secondary Market if someone wishes to trade.

    Primary Market
    The primary market is where the securities are made via an IPO.

    Secondary Market
    A secondary market is where investors trade the already-issued securities without involving the issuing companies. It is what people refer to when they are talking about the stock market. For more details visit us.

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