Share market
The market which in companies buy and sell securities and other trades and equipment is called
the stock market. The stock market has two major components.
1. Primary share market.
It is the market in which investors buy shares directly from a company that issues
shares. In the primary share market only happen, investors buy shares. There are two
main types of trading in the primary share market.

Initial public offer – IPO
This is the first time a company has issued shares and debentures to the public,

Seasoned public offer- SPO
A company that has already issued shares is issuing non- issuing shares to the
stock market to increase its/company capital.
2. Secondary share market.
The secondary share market is the market in which investors exchanges shares
purchased from the primary shares exchanges between investors, this involves both
buying and selling of shares. The shares market that playas this role is known as the
Colombo stock market.
Colombo stock Exchange- CSE
The company that administers the buying and selling of shares in listed companies is known as
the Colombo stock exchanges. This company is a limited liability company incorporated under
the companies Act.
 Owners are Colombo stock marketThe Colombo stock Exchanges is owned by brokerage firms. 36 brokerage firms can
be seen there. These brokerage firms are divided into full members and trading
members. Fifteen companies serve as the full members. The rest of the companies act
as trading members. The Colombo stock exchanges is the easiest way for an investor
to enter the Sri Lankan capital market.
 Functions of the Colombo stock exchanges –

Facilities related to stock exchanges.

Converting public companies into officially listed companies.

Maintaining recorded boards.

Maintaining the central depository system.

Disclosure of information’s on stock exchanges.
 Significances of the Colombo stock exchanges.
This firm encourages individuals and organizations to invest. And this
company facilitates the company to collect a lot of aspirations. It is also doing
attracts foreign investors. It is also helps to enhance the reputation and images
of the companies.
 Parties involved in the Colombo stock exchanges
Brokerage Company.

Investors.

Listed companies.

Securities and exchanges commission.

Ministry of Finance.

Credit rating company.