Only stocks listed with a reputable stock exchange are considered to be higher in value. Companies can cash in on their market reputation in the stock exchange market by increasing their number of shareholders. Issuing shares in the market for shareholders to acquire is a potent way of increasing shareholder base and base, which in turn increases their credibility.

One of the most effective ways of availing cheap capital for a company is by issuing company shares in the stock exchange market for shareholders to acquire. Listed companies can generate comparatively more capital through share issuance owing to their repute in a stock exchange market and use it to keep their company afloat and its operations running.

Listing helps shareholder avail the advantage of liquidity better than other counterparts and offers them ready marketability. It allows shareholders to estimate the value of investment owned by them.Additionally, it permits share transactions with a company and helps them to even out the associated risks. It also helps shareholders to improve their earnings from even the slightest increase in overall organisational value.

The quoted price also tends to represent the real value of a particular security in a stock exchange in India.

The fact that the prices of listed securities are set as per the forces of demand and supply and are disclosed publicly, investors are assured to acquire them at a fair price.

The primary market is a capital market where new debt-based, equity-based, or other asset-based securities are created and directly purchased by the investors from the issuer.

Once the securities are sold for the first time, they are ready to enter the secondary market for further sale and purchase. Public issues, rights issues, preferential issues, and private placement are issues that classify a primary market. New issue offering, underwriting, and distribution are the three primary functions of these markets.

The secondary market is also known as the stock market. A secondary market is the one in which the securities of ​the companies are traded among the investors. That means, the investors can buy and sell securities freely without ​any intervention of the issuing company. In such transactions that take place among the investors, the issuing ​company does not participate in the income generation. Besides, the share valuation is based on the share’s ​performance in the market.It acts as a trading platform for investors. Here, inverstors trade in securities without ​involving the companies who issued them in the first place with the help of brokers. This market is further broken ​down into - auction market and dealer market

This particular stock exchange was established in 1875 in Mumbai at Dalal Street. It renowned as the oldest stock ​exchange not just in Asia and is the ‘World’s 10th largest Stock Exchange’.

The estimated market capitalisation of Bombay Stock Exchange as of April stands at $ 4.9 Trillion and has around ​6000 companies publicly listed under it. The performance of BSE is measured by the Sensex, and it reached its all-​time high in June in 2019, when it touched 40312.07.

The NSE was established in 1992 in Mumbai and is accredited as the pioneer among the demutualised electronic ​stock exchange markets in India. This stock exchange market was established with the objective to eliminate the ​monopolistic impact of the Bombay Stock exchange in the Indian stock market.The estimated market capitalisation ​of National Stock Exchange as of March 2016 was US$ 4.1 trillion and was acclaimed as the 12th largest stock ​exchange in the world. NIFTY 50 is NSE’s index, and it is extensively used by investors across the globe to gauge the ​performance of the Indian capital market.