An equity market or a share market is a platform for buying and selling stocks of various listed companies. Stocks are simply an investment method to build wealth. When you invest in the stock of a company it means you own a share in the company that issued the stock. Stocks investment is a way to invest in some of the most successful companies. Companies use stocks to raise money to fund growth, new products, and other important initiatives.

A company requires funds for its businesses and to meet its working capital requirements. To receive funds, it can resort to both debt and equity instruments. It can provide its shares or stocks through Initial Public Offerings (IPOs) to investors as part of raising funds through equities or offer loan instruments with fixed interest rates, known as debentures.