Friday, February 15, 2008

How and where can I buy shares?

There are two ways to buy shares.
1.) Primary market :- When a company makes a new issue of shares and offers directly to the public is known as primary market. It is also called an initial public offering (IPO). The investors either apply on the basis of the issue price or need to bid by the book building process. Once the IPO is over, this stock gets listed in the secondary market and traders can start trading it.
2.) Secondary market :- Buying shares of a company which is already listed in the stock exchange is called secondary market. The shares in secondary market are bought through brokers. The market where securities are traded after they are initially offered in the primary market. Most trading is done in the secondary market. It can also be called as a market on which an investor purchases an asset from another investor rather than an issuing corporation. In the BSE as well as NSE, all stock exchanges are part of the secondary market, as investors buy securities from other investors instead of an issuing company.

1 comment:

aditi said...

Mostly traders trade on existing securities , that is in primary market. To know more about share market contact epic research .