Stock Market

The stock market refers to the collection of markets and exchanges where activities such as buying, selling, and issuing shares of publicly-held companies occur. It serves as a platform for investors to trade stocks, which are representations of ownership in a company. The stock market encompasses various platforms, including stock exchanges like the New York Stock Exchange (NYSE) and NASDAQ, where shares of stock are listed and traded. It allows companies to raise capital by offering shares to the public, while investors have the opportunity to purchase shares and potentially earn profits through capital appreciation and dividends.

Transactions in the stock market are driven by supply and demand dynamics, reflecting the perceived value of the companies based on various factors, including financial performance, market conditions, economic indicators, and investor sentiment. The stock market plays a crucial role in the economy, facilitating capital allocation, enabling investment, and contributing to wealth creation. It is also subject to regulation to ensure fair trading practices and protect investors.