Introduction

A stock market or equity market is a public entity (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately

The SEM was incorporated in Mauritius on 30th March 1989 as a private limited company with a public authorization. The setting up of the SEM constituted an important step in the process of building up a modern financial sector to cater for the needs of a growing economy. The SEM is a successful exchange responsible for the operation and promotion of an efficient and regulated securities market in Mauritius. The SEM is established under the Stock Exchange Act of 1988 and additionally,
On this exchange, two markets are operated; the Official Market and the Development & Enterprise Market (DEM). For the purpose of this study, official market will be considered and a brief introduction of DEM will be discussed.

Before moving forward it will be difficult to understand the concept of the sem without the definition of the description of the main keywords, It is explain as follows
Investors
An investor puts money behind an idea, a project or a company with the hope of making a financial return There are two types investors.
The passive Investors
He buy shares and in returns he waits to have a share dividend

The active investors
Buying and selling shares are there main activity. The make it as a business.

The issuers It can be a public company who wants to put his shares on the stock market. There are some criteria which the need to followed. any company or other legal Person or undertaking (including a public sector issuer), any of whose equity or debt securities are or are proposed to be the subject of an application for listing or