What are Stock Exchanges?
Ans. The stock exchanges are part of capital market. Securities (shares and debentures) are traded here. These markets can be primary or secondary; for equity or derivatives and equity and debt markets. Features of Stock Exchanges:
(a) In a stock exchange, two types of markets exist:
primary and secondary.
(b) There are four ways of issue of capital:
Right Issue, Public Issue, Private Placement and preferential allotment.
(c) The most common route is public issue. Generally, new issues are over subscribed.
(d) SEBI is the regulatory authority.
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