27/02/2025
How the Share Market Works
● Companies list their shares through an Initial Public Offering (IPO) to raise capital.
● Investors buy these shares to own a portion of the company.
● The share price fluctuates based on demand and supply, influenced by news,
earnings reports, and global events.
Types of Markets: Primary vs. Secondary Market
● Primary Market: Where companies issue new shares to the public (e.g., IPOs).
● Secondary Market: Where existing shares are traded among investors (e.g., NSE,
BSE).
Example:
If Reliance Industries issues new shares through an IPO, it happens in the Primary Market.
Once listed, if you buy or sell Reliance shares, it’s happening in the Secondary Market.
