The share market is a system of trade where shares of companies that are publicly traded are issued, and can be bought and sold
begin trading in stocks, you need to create two accounts- a demat account and a trading account.
A demat account is where your shares will be stored in a digital or electronic format.
A trading account can be used to buy and sell shares.
A bank account is linked to the trading account to facilitate the smooth transfer of money from the bank account to the trading account to enable the purchase or sale of shares.
There are two different segments in the share market, namely the primary market and the secondary market.
The primary market is where the stocks newly issued by a company are sold to the public for the first time. This is done via an Initial Public Offering (IPO)
Once the company is listed on the exchange, its shares can then be traded in the secondary market.
A listed company may also offer new, additional shares through other offerings at a later stage, like through rights issue or through follow-on offers.
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