UNIT-V EQUITY MARKETS
Q: Explain in detail the concept of Equity Market and its importance. Introduction The equity market , also known as the stock market or share market , is a key component of the financial system where shares (ownership interests) of companies are issued and traded. It provides a mechanism for companies to raise long-term funds for business expansion and for investors to participate in the profits and growth of these companies. In an equity market, investors buy shares of a company and, in return, become part-owners. This ownership allows them to share in the profits (through dividends) and benefit from increases in share prices. Structure of the Equity Market The equity market in India is divided into two main segments: Primary Market This is the market where new securities are issued for the first time. Companies raise capital by offering shares to the public through Initial Public Offerings (IPOs) or Follow-on Public Offers (FPOs) . Merchant bankers, underwr...