Stock Market

The stock market refers to the collection of markets and exchanges where the buying, selling, and issuing of shares of publicly traded companies takes place. It serves as a platform for investors to purchase ownership stakes in businesses through stocks, which represent shares of a company’s equity. The stock market plays a crucial role in the economy by facilitating the raising of capital for companies, allowing them to grow and expand. It also provides investors with opportunities to earn returns on their investments through capital gains and dividends.

Stock prices in the market are determined by supply and demand dynamics, influenced by various factors including company performance, economic conditions, and investor sentiment. Major stock exchanges, such as the New York Stock Exchange (NYSE) and NASDAQ, provide the infrastructure for these transactions to occur. Overall, the stock market is an essential component of modern finance, enabling liquidity and investment opportunities for both individuals and institutions.