Share market is the market for securities where organized issuance and trading of shares takes place either through exchanges or over-the-counter in electronic or physical form.
Basically, Share Market can be divided into two parts :-
1. Primary MarketIt is the market where new issues of securities are offered to the investors.
2. Secondary MarketAn investor of a secondary market buys a security from another participant of the same and not from any issuing corporation (as in case of Primary Market).
Shares in the Share Market are either traded through :-
(a) Stock Exchange These are organized market places where stocks, bonds are other equivalents are traded between the buyers and sellers where exchange acts as a counter-party to both the participants in case of any default. The contracts are standardized and not customized ones. For example, NYSE, NASDAQ, NSE, NIKKEI, etc.
(b) Over-the -Counter (OTC)These are not centralized exchanges. Here, the trade takes place through a network of dealers. Generally, the OTC contracts are bilateral customized contracts and not standardized ones.
Earnings Per Share
Earnings Per Share or EPS can be defined as the profit portion of the company mainly allocated to the outstanding share. Find in detailed about EPS.
Share Prices
In the secondary market, the share prices can be defined as the prices of the shares of the various companies.
Share Brokers
Share Brokers are generally the individuals or firms who mainly buys or sells orders on behalf of the investors. Share brokers are the agents in various stock exchanges.
Share Company
The Share Company generally renders various services to the investors operating in the share market. Those companies are also called as the Share Broking Companies.
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