How To Buy Stocks?
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- Primary Market
- Secondary Market
Primary Market: Primary market is a market where a company issues its shares for the first time in front of public in the market. When a company issues shares for the first time it is known as IPO that is an Initial Public Offering.
Any company in India who wants to acquire capital by selling its share to the public needs to bring IPO in the market. This IPO brings all the details about the company, the reason for issuing shares, the company’s background, etc. People can buy stock or share directly from the IPO.
Benefits of Buying Stocks from IPO:- The prices of shares are already fixed in a price band, where the minimum and maximum price is already determined.
- The prices of shares are usually found in low cost in the IPO before being listed.
- Secondary Market: Stock exchange is known as the secondary market where trade takes place regularly, where the shares are available to buy and sell at all times.
Once the shares are listed in the stock market after the primary market, then they are available for everyone to buy and sell at all times. The benefit of buying the share from secondary is that they always available to buy but the price of shares keeps changing according to market position.
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