Stock Market

The stock market refers to the collection of markets and exchanges where activities such as buying, selling, and issuing shares of publicly-traded companies take place. It serves as a platform for investors to purchase stocks, which represent ownership shares in corporations. The stock market is a key component of the global economy, facilitating capital accumulation, business growth, and investment opportunities.

Investors buy and sell stocks to earn returns on their investments, either through capital gains (the increase in stock value) or dividends (a portion of a company’s earnings distributed to shareholders). The stock market operates through various exchanges, such as the New York Stock Exchange (NYSE) and the Nasdaq, each of which has its own rules and listing requirements.

Market prices of stocks are determined by supply and demand dynamics, reflecting investor sentiment, economic conditions, and company performance. Overall, the stock market is essential for both individual investors and businesses, as it provides a mechanism for trading equity and can help companies raise capital for development and expansion.