Definition of 'Equity Market'
There are two main types of equity markets: the primary market and the secondary market. The primary market is where new shares are issued by companies. The secondary market is where existing shares are traded between investors.
The equity market is a complex and dynamic market, and there are many factors that can affect the price of a share. These factors include the company's financial performance, economic conditions, and investor sentiment.
The equity market can be a volatile market, and investors should be aware of the risks involved before investing. However, the equity market can also be a rewarding market, and investors can earn significant returns over time.
Here are some of the key features of the equity market:
* It is a market for buying and selling shares of companies.
* It is a secondary market, where existing shares are traded between investors.
* It is a global market, with exchanges in major cities around the world.
* It is a liquid market, with shares that can be bought and sold quickly.
* It is a volatile market, with prices that can fluctuate significantly.
* It is a risky market, but it can also be a rewarding market.
The equity market is an important part of the financial system, and it provides a way for companies to raise capital and for investors to earn returns. However, it is a complex and volatile market, and investors should be aware of the risks involved before investing.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.