00:01
Okay, so let us understand the solution through an example.
00:09
So let's let me introduce the concept of stock market into this question so that we can understand the solution as well.
00:24
So there is a term stock market which is well popular right now among students, investors, and all type of persons.
00:43
So in stock market what happens? there is a primary market.
00:53
I will not go into detail because i'm just introducing the concept to make the example more clear.
01:03
And there is secondary market.
01:10
If an entity, let's say x company has to raise capital, has to raise capital, then it will directly go to the primary market with an ip.
01:33
Initial public offering.
01:36
But whereas in case of secondary market, what happens when the initial investors subscribes to the initial public offering issued by the x company, then what happens? the shares, all the shares or all the instruments which have been issued by the company seeking to raise the capital will be got placed in the secondary market.
02:06
And what i've been secondary market the instrument will be placed like let's suppose 100k shares and they will be buyer and seller of these shares at different prices a seller is a person who will be willing to sell his holding or number of shares in the market to acquire the money a buyer is a person who is willing to purchase the shares or who is willing to increase its holding of shares by paying the money to the seller...
