Primary & secondary stock markets by kotak securities

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Kotak Securities reviews Primary & Secondary Stock Markets

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Primary & secondary stock markets by kotak securities

  1. 1. Primary & Secondary Stock Markets<br />
  2. 2.   Primary Market<br />
  3. 3. Primary market<br />Primary Market is the means by which companies float(propose) shares to the general public in an Initial Public Offering to raise capital.<br />An Issuer(Company) enters the Primary markets to raise capital. They issue new securities in exchange for cash from an investor (you, the buyer) <br />Initial Public Offers (IPO's)- If the Issuer is selling securities for the first time, these are referred to as Initial Public Offers<br />
  4. 4. Secondary Market<br />
  5. 5. Secondary Market<br />Secondary Market transactions are referred to those transactions where one investor buys shares from another investor at the prevailing market price or at whatever price both the buyer and seller agree upon. <br />Why?- Once new securities have been sold in the Primary Market, an efficient mechanism must exist for resale, if you are to view securities as attractive opportunities.<br />
  6. 6. Secondary Market<br />The Secondary Market or the Stock Exchanges are regulated by the regulatory authority. In India, the Secondary and Primary Markets are governed by the Security and Exchange Board of India (SEBI).<br />Who is the broker really?- Normally investors transact in securities using an intermediary such as a broker who facilitates the process through a stock exchange.<br />
  7. 7. Understood, but what is a Stock Exchange?<br />
  8. 8. Stock Exchange<br />A Stock Exchange is a place that provides facilities to stock brokers to trade company stocks and other securities. <br />A stock may be bought or sold only if it is listed on an exchange<br />It is the meeting place of the stock buyers and sellers<br />India's premier Stock Exchanges are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).<br />
  9. 9. Remember: Primary and secondary markets are the places where you test the strength of your investments. Monitor it closely or take the aid of a broker<br />
  10. 10. Thank You!<br />Questions? Feedback?<br />Read More<br />Facebook<br />Twitter<br />Website<br />

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