Let's explore into the world of Equity Capital Markets (ECM).

Equity Capital Markets (ECM) is where companies sell shares to the public for the first time through Initial Public Offerings (IPOs) or issue more shares later on through follow-on offerings. This helps companies grow by gaining more shareholders. ECM also involves analyzing these activities to understand market trends.

For Example-

Let's say there's a company called XYZ that's kept its shares private, meaning regular people can't buy them. If XYZ decides to sell its shares to the public for the first time, it's called an IPO. People who want to invest in XYZ would study how the IPO might go, what it could mean for them, and how much it might cost.

Now, if XYZ is already selling shares to the public and then decides to sell even more, that's called a follow-on offering. If XYZ does this, experts would look closely at the details and what it might mean for the market.

Understanding Equity Capital Markets helps people analyze how companies raise money by selling shares, which can give them useful insights into how the market works.