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- Equity securities represent claims on their proportional share in a company's net assets and profits. They are categorized into two types: common stock and preferred shares.
- Common stocks are offered through IPOs, FPOs, rights issues and private placements for raising funds in domestic market and as ADR and GDR issues in international markets,
- Stock Exchanges can be categorized as Public, Private and Bankers bourses. Trading procedures in different stock markets vary because of diverse operational set-up and legal procedures. In some stock markets, transactions are to be settled essentially in cash