What are the different types of Equity Market?
Equity market consists of primary market and secondary market.
Primary equity market – is also called new issues market as securities are issued to public for the very first time. In this market the new issues are made in following four ways:
- Public issue
- Rights issue
- Private placements
- Preferential allotment
Secondary equity market – also known as Stock exchanges which are an important part of capital market. It is an organized market place where securities are traded. These securities are issued by government, semi-government bodies, public sector undertakings, joint stock companies etc.