Types of Stock Market

Primary Share Market

A company enters enters the primary market to raise its funds. It is mandatory for a company to be registered in a Primary Market to make itself able to issue Shares to the public and raise money.
In case, a company is selling shares for the very first time it is termed as an IPO (Initial Public Offering), after which the company becomes public. While going for an IPO  (Initial Public Offering), the Company has to provide details about itself, its financials, its promoters, its businesses, stocks being issued, price band and so on.

Secondary Share Market

In the Secondary Market, the investors trade already listed securities by buying and selling them.
Secondary Market transactions are transactions where one investor buy shares from another at the prevailing price. Normally, these transactions are conducted through Broker. Secondary Market offers investors a chance to sell all its shares and exit the financial market.
For ex-: Shares of SBI are trading in the market at RS. 248.50 a share. An investor can buy these shares at current market price and will get part-ownership in the company and will become a share-holder.

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