Various kinds of Equity Market

Question

Write down the various kinds of Equity Market?

Answer 1

Equity market comprises of primary market and secondary market.
Primary equity market – This is also termed as new issues market as securities are issued to public for the very initial time. In this market the new issues are made in following four ways which are illustrated below:

- Public issue

- Rights issue

- Private placements

- Preferential allotment

Secondary equity market – This is also termed as Stock exchanges that are an imperative part of capital market. This is an organized market place where securities are traded. Such securities are issued by semi-government, government bodies, joint stock companies, public sector undertakings and so on.