Stock market/Stock Exchange or bourse is a corporation or mutual organization which provides facility to traders to issue and redemption of stocks, bonds and other financial instruments through members/brokers. Place where stocks, bonds and other securities are bought and sold.
Primary market where Corporate institutions, Governments, municipalities and other incorporated bodies can raise capital by issuing shares, stocks, bonds and other financial instruments or the initial offerings of stocks and bonds to the investors.
Secondary market is a place where investors can buy and sell their securities. Stock Exchanges are functioning with stringent rules listing requirements and other rules and regulations to the protection of investors and transparent trading process. In olden days stock trading are conducted on the trading floors of the exchange open out cry system (by shouting order and instructions). Later all stock exchanges are computerized with modern technology, traders can trade online or over telephone, after the automation of stock exchanges, stock trading is common among ordinary people. At the beginning stock market trading is open to all, but at present members or owning association may buy and sell directly . Members, or stock brokers, buy and sell for themselves or for others, charging commissions for their services. A stock may be bought or sold only if it is listed on an exchange, and it may not be listed unless it meets certain requirements set by the exchange's board of governors