Stock Market

What is the Stock Market?

The stock market is a centralized marketplace where investors buy and sell shares of publicly traded companies. It serves as a platform for companies to raise capital by issuing stocks and for investors to invest in these stocks to potentially earn returns.

How Stock Markets Work

The stock market enables companies to access funding for expansion, research, and development by selling ownership stakes to investors. Investors, including individuals, institutions, and organizations, use the stock market to invest in stocks for various reasons, including capital appreciation, dividend income, and portfolio diversification.

Additionally, the stock market provides liquidity, transparency, and price discovery, allowing investors to buy and sell stocks efficiently and at fair market prices. Overall, the stock market plays a vital role in the global economy by facilitating capital formation, wealth creation, and economic growth.