Vol: 1, Issue: 3 2011

Page: 72-77

Study on Behavior of Stock Prices and Returns have Supported the Randomness and Independence

Shunil Tripathi

An efficient capital market is a prerequisite of economic development. Broadly, capital market can be classified into new issue market (primary market) and secondary market (stock market). The new issue market deals with new securities, which were not previously traded, and secondary market is mainly concerned with the trading of securities previously issued. Resource allocation in the capital market is facilitated by the effective support of financial intermediaries that include various stock exchanges, issue houses, underwriting agencies and merchant banks.