When any company offers issue of equity shares for the first time, it is called an Initial Public Offering (IPO) where the company raises money
from investors who submit applications to become shareholders of the company.
Once the shares are issued to investors, shares get listed in Secondary Market composed of exchanges like NSE and BSE. Once listed, the investors can sell these shares on the exchanges to other investors who might be interested in buying the company. Many investors invest in a company through Primary Market IPO with an objective of selling the shares on listing and reaping listing gains in case shares list at a price higher than what they paid for. This way they book profit by selling at a higher price. Share prices keep on changing on exchanges based on expectations and various prospects of the company like quality of its management, industry outlook, and economic outlook of the country and so on. International market also influence our equity market as in the globalization all the markets are interlinked.
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