The stock market is also referred to as the equity market. The existence of a stock market is vital as it allows companies access to money or capital against the shares that investors buy. The main aim of stock markets is to link and facilitate exchange of securities to reduce the risk of investing. The exchange of securities takes place among buyers and sellers of the shares. The market where the securities are created through the IPO is referred to as the Primary market. On the other hand the market where previously issued securities are traded is referred to as the secondary market.
