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The area where financial institutions assist businesses in raising equity capital and where stocks are traded is referred to as the equity capital market (ECM). It consists of two markets: the primary market, which is used for private placements, initial public offerings (IPOs), and warrants; and the secondary market, which is used for trading in listed securities like futures, options, and warrants as well as existing shares.
Equity Money Markets (ECM) is the umbrella term for a vast network of financial institutions, markets, and distribution channels that operate together to help businesses raise capital. Equity money, which is used to finance business expansion, is raised by the company issuing shares, either publicly or privately.
Primary equity markets, which mostly comprise OTC markets, refer to raising capital through private placement. The principal location for public investment in corporate equity is the secondary equity market, which includes stock exchanges. Bringing shares to IPOs and secondary offerings are examples of ECM activities.
