
Equity Market
The equity market is where shares are traded, capital is raised, and stocks are offered, split into two types. The primary market involves first-time share offerings via IPOs or private placements, often over-the-counter, though exchange-traded IPOs are regulated. The secondary market is where existing shares, bonds, futures, and options are traded, typically on well-regulated exchanges. The primary market fuels company fundraising, while the secondary provides liquidity for investors. Together, they form a system connecting businesses to capital and traders to opportunities, balancing issuance and ongoing trade.
Related Terms
Units
Units in a mutual fund represent an investor’s share of ownership in the fund. When...
Forward Price
The forward price is the agreed-upon value at which a forward contract is settled and...
Arbitrage
Arbitrage is a trading strategy that exploits small price differences for a security across markets...
Hammer Candlestick Pattern
A Hammer Candlestick pattern occurs when a stock, commodity, or currency opens lower than its...
Ask Size
The ask size refers to the number of units of a security that an investor...
Internal Rate Of Return
The Internal Rate of Return (IRR) measures the compound annual return of a financial asset,...

