What is the equity market

The equity market is a hub in which shares of companies are issued and traded. It is also referred to as the stock market and is one of the most vital areas of a market economy. It provides a platform for companies to raise capital by issuing shares, and for investors to buy and sell these shares based on the company's future performance. The equity market is divided into primary and secondary markets, with the primary market being where companies first list their shares through an initial public offering (IPO), and the secondary market being where already listed shares are traded among investors. The equity market plays a pivotal role in supporting a market-based economy by providing capital to companies and investment opportunities for investors.