Q8. Consider the following statements about Equity Markets:
1. An equity market is different from a share market.
2. Equity market is the aggregation of buyers and sellers of stocks.
Select the correct answer using the codes given:
b) 2 only
Equity Market
An equity market, often know as stock market or share market, is a market where shares of companies or entities are issued and traded, either through exchanges or through listed dealers or brokers. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds.
Equity market is the aggregation of buyers and sellers of stocks. The equity sale gives a company access to capital and investors a slice of ownership in a company with the potential to realize gains based on the future performance of the company.