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 occur. It serves as a platform for investors to trade equity securities (stocks) and is an essential component of the global economy, allowing companies to raise capital by offering shares to investors. The stock market operates through various exchanges, such as the New York Stock Exchange (NYSE) or the Nasdaq, where stock prices are determined by supply and demand dynamics.

Investors participate in the stock market with the aim of earning returns on their investments through price appreciation or dividends. The stock market is influenced by various factors, including economic indicators, interest rates, corporate performance, and investor sentiment. Market participants can include individual retail investors, institutional investors, and traders.

Overall, the stock market serves as a key indicator of economic health, enabling capital allocation and providing liquidity for businesses and investors alike.