Stock market is a place where shares of pubic listed companies are traded. There are two types of stock market : primary & secondary. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital. It is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company. The secondary market or the stock exchanges are regulated by the regulatory authority.