Not everyone who likes to invest would be successful in getting the shares allotted in IPO. But they need not be disappointed because these shares are likely to be listed on the stock exchange and soon be available in the secondary market. It is possible because those who have been allotted shares may want to sell them.

It is in the “secondary market” that the majority of investors buy and sell stocks. Here they do not directly purchase from the company as it is only during an IPO does a company issue stock to shareholders. In other words, when someone buys shares of a company in the secondary market, they are not dealing with the company, but with someone who sold their shares.

The secondary market deals with:-

• Equities
• Rights Issue / Rights Shares
• Bonus Shares
• Preferred Stock / Preference Shares
• Cumulative Preference Shares
• Participating Preference Shares
• Bonds
• Zero-Coupon Bond
• Convertible Bond
• Debentures
• Commercial Papers
• Coupons
• Treasury Bills

The secondary market is regulated by SEBI, which is the authority established to protect the interest of the investors in securities and to promote its development and matters connected with it.