A Market is a place where we buy and sell goods. In an ordinary market usually physical commodity such as fruits grains etc, are exchanged with the money. Like same in a stock market the securities is exchanged with the money. Different types of the securities are traded in the stock market. These may include ownership securities, debt securities, short term securities, long-term securities, government securities, non government or corporate securities.
Types of Financial Market : -There are mainly two types of financial market
- Primary market
- Secondary market
Primary market The market mechanism for the buying and selling of new issued securities is known as primary market. In primary market new issues of securities are sold by the issuing companies direct to the investor.
Secondary Market The secondary market deals with the securities which have already been issued and one owned by investor both individual and institutional these may be traded between investor the buying and selling of securities already issued takes place in the stock exchanges. Hence Stock exchange constitutes the secondary market in securities