Securities Markets

Securities Markets is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc.

Further, it performs an important role of enabling corporates, entrepreneurs to raise resources for their companies and business ventures through public issues. Transfer of resources from those having idle resources (investors) to others who have a need for them (corporates) is most efficiently achieved through the securities market.

Stated formally, securities markets provide channels for reallocation of savings to investments and entrepreneurship. Savings are linked to investments by a variety of intermediaries, through a range of financial products, called ‘Securities’.

Securities market is regulated by the regulators.

Various securities one can invest in are:
1. Shares
2. Government Securities
3. Derivative products
4. Units of Mutual Funds etc…

Securities Market has two interdependent segments, they are the primary and secondary markets. The primary market paves path for fresh issue and secondary market deals with securities previously issued.