what Are the Types of Stock Market

Disclamer

All Information provided on this website (THE MONEY UNIVERSE ) is for Educational & Informational Purposes only. I am not a SEBI Registered Financial Advisor, Analyst or Broker. 

Introduction

Hello Dear readers, 

The stock market is one of the most popular ways to build wealth in the world. It allows investors to buy and sell shares and build wealth, and contribute to the world's growth. Most beginners think there is only one type of stock market but that's not true. The stock market has 5 types. and each type of stock market works differently. if you learn it you can better plan your investment .in this aarticle I will share how the stock markets works which type of stock market is right for you.

Here's Are the 5 Types of The Stock Market

1.Primary market 

The primary market is where companies sell shares to the public. In this market companies want to raise funds to grow their business that's why companies receive money from the public .You can buy any shares of companies that are listed in the market. This market provides an opportunity to become an owner or a share holder of a company. The most important thing is in this market you can buy shares only not sell.

 

For Example in simple words if a company launched its ipo in the market then you can buy shares of this company . so dear readers, it's called primary market

Impotant Points 

 

in this market investors buy shares directly from the company 

investors can buy shares only not sell them. 

Company Shares are sold to the public first time

company recive fund from investors 

primary market is beneficial for companies

2.Secondry Market

 Dear Readers in Simple words The Secondary market is the next option after the primary market. The benefit of this market is you can buy and sell shares of the company. in this market millions of people buy and sell stocks every day. The most important thing is you cannot buy shares directly from the company .This market provide you investors or brokers. For Example (NYSE) and Nasdaq is popular stock exchange in America. in china is (SSE) Shanghai Stock Exchange. 

Impotant Points

in this market millions of people buy and sell stocks every day

This market is provides you to investors

You don't buy shares directly from the company 

this market is provides you with a good system to buy and sell . 

3.Over The Counter (OTC) Market

Dear Readers, in this market investors "directly buy shares without any stock exchange like Nasdaq or NYSE. OTC is offered to investors to buy share of some unlisted companies. In this market buyer and seller make deals. 

For Example in simple words if you go to a shop and buy products directly . like in OTC market it means seller and buyer deal directly . 

Important Points

In this market buyers and sellers make deals. 

 No stock exchange is need for buy and sell shares. 

Mostly small companies are trade 

it is good system for dealer

4.Auction Market

Dear Readers This Market is decides companies share prices.In simple buyers and sellers make a deal with the same price.

For Example a seller sells a share for 50$, to same and a buyer buys at the same price 

important points

buyers and sellers make a deal with the same price.

it helps analyze the market price

in this market stock exchange is used 

This is good system for deciding right pricing

5.Dealer Market

Dear Readers In this market investors directly buy shares through a dealer .this market helps investors buy and sells shares . while an investor wants to sell his shares, then a dealer buys those shares. 

For Example in simple words if you want to buy shares then a dealer is sell shares to you. 

important points

this market investors directly buy shares through a dealer.

This is a good system for dealers

 Trading system is very fast in this market

Dealers and buyers have a strong connection . 

What is Real Estate Capital Market

Conculation

"Today, I explained to you how many types of stock markets exist and how they works and important points of each market . if I had a mistake so please forgive me. I hope you liked this aarticle and Thank you Reading this aarticle.