Context:
Domestic equity markets recorded annual profit for the ninth consecutive time because of a level of 10% below all-time high.
Domestic Equity Markets
A domestic equity market is an interface for buying and selling shares of companies within a country.
- What is it?
- Also known as the stock market or share market, an equity market is an interface where companies can raise capital in exchange for issuing shares, and investors can buy and sell those shares.
- How it works?
- Companies float stocks to investors, who buy them in anticipation of making a profit from selling them in the future. Investors can make a profit through capital gains if stocks perform well.
- Where it occurs?
- Equity markets can be over-the-counter or on stock exchanges. In India, the National Stock Exchange and Bombay Stock Exchange are examples of stock exchanges.
