The share market, also known as the stock market or equity market, can be broadly categorized into different types based on the nature of transactions and the type of shares being traded. Here are the main types of share markets:

1. Primary Market

The primary market is where new securities are issued and sold for the first time. This is also known as the New Issue Market (NIM). Companies, governments, or public sector institutions raise capital by selling new stocks and bonds to investors.

Key Features:

• Initial Public Offerings (IPOs): When a private company offers its shares to the public for the first time.
• Rights Issues: Existing shareholders are given the right to buy additional shares at a discount before the new shares are offered to the public.
• Private Placements: Securities are sold directly to a small group of institutional or accredited investors without a public offering.

2. Secondary Market

The secondary market is where existing securities are traded among investors. After the initial issuance in the primary market, shares can be bought and sold on stock exchanges or over-the-counter (OTC) markets.

Key Features:

• Stock Exchanges: Organized and regulated markets where securities are listed and traded. Examples include the New York Stock Exchange (NYSE) and NASDAQ.
• Over-the-Counter (OTC) Markets: Decentralized markets where trading is done directly between parties, typically via electronic networks. OTC markets often handle securities not listed on formal exchanges.

3. Cash Market

In the cash market, also known as the spot market, transactions are settled immediately or within a few days. This market involves the buying and selling of securities with the expectation of quick settlement.

Key Features:

• Immediate Settlement: Transactions are usually settled within a few days (T+2 or T+3, where T is the transaction date).
• Ownership Transfer: The buyer gets the ownership of the securities soon after the purchase.

4. Derivatives Market

The derivatives market involves trading financial instruments like futures and options, which derive their value from underlying assets like stocks, bonds, commodities, or indices.

Key Features:

• Futures Contracts: Agreements to buy or sell an asset at a predetermined price at a specified time in the future.
• Options Contracts: Agreements that give the buyer the right, but not the obligation, to buy or sell an asset at a specified price before a certain date.

5. Equity Market

The equity market specifically deals with the trading of equity shares of companies. Investors can buy or sell shares of public companies, gaining ownership stakes and voting rights.

Key Features:

• Common Stock: Represents ownership in a company and entitles the shareholder to voting rights and dividends.
• Preferred Stock: Represents ownership but usually does not come with voting rights. Preferred stockholders receive dividends before common stockholders and have a higher claim on assets in case of liquidation.

6. Bond Market

While not part of the traditional share market, the bond market is closely related. It involves the trading of debt securities issued by corporations, municipalities, and governments.

Key Features:

• Corporate Bonds: Debt securities issued by companies to raise capital, offering periodic interest payments and the return of principal at maturity.
• Government Bonds: Debt securities issued by governments to fund public projects and activities. They are typically considered low-risk investments.

7. Commodity Market

Though distinct from the share market, the commodity market is worth mentioning as it involves the trading of commodities like gold, oil, and agricultural products. Investors can trade commodity futures and options, which are derivatives based on these physical assets.