There are two types of stock markets:

Primary market: The primary market is where newly issued securities, like stocks and bonds, are sold for the first time by companies or governments directly to investors. A company enters the primary market through an by publicly registering itself on the stock exchange for the first time. Primary markets allow companies to raise long-term funds with the issue of new shares.

Secondary market: Once a company’s new shares have been sold in the primary market and get listed, those shares are traded on the secondary stock market. No new shares are issued and investors buy and sell the existing shares at market prices.