Stock market is a place where people buy/sell shares of publicly listed companies. It offers a platform to facilitate seamless exchange of shares. In simple terms, if A wants to sell shares of Reliance Industries, the stock market will help him to meet the seller who is willing to buy Reliance Industries.
Bombay stock exchange of India(BSE)πNational stock exchange of india(NSE)π
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ππHOW COMPANIES GROW FUND FROM STOCK MARKET?π€
✍π‘π‘When a business grows to the point that it is ready to go public, it does so through an initial public offering. Reasons for a company to sell stock in this manner are varied. Owners, investors and venture capitalists want to recoup their money or desire the prestige that comes with ownership of a publicly traded company. An IPO can raise money for further growth and expansion.
When a firm decides to pursue an IPO, it hires an investment banker to handle the offering. Lawyers file documents with the SEC, and brokers begin to gather indications of interest. When all the legal issues are settled, the company goes public and the stock trades for anyone to buy or sell.
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