The equity market, commonly known as the stock market is the financial system where the shares of a company are issued and traded. The equity market accelerates the capital formation activity. It enables the investors to own a part of the company and benefit from the future gains of the company and provides an opportunity to participate in the company’s success through an increase in its stock price. However, the risk involved in equity markets is higher than debt markets, given the analogy: higher return, higher risk.