Stock Market

The stock market is a platform or system where buyers and sellers can trade shares of publicly-held companies. It serves as a means for companies to raise capital by issuing stocks (equity) and for investors to buy ownership stakes in those companies. The stock market is characterized by various exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ, where trades are facilitated.

Prices in the stock market are determined by supply and demand dynamics, reflecting investors’ perceptions of a company’s future potential and overall economic conditions. Investors can engage in various activities, including buying, selling, or holding stocks, and they can also participate in other financial instruments related to the stock market, such as options and mutual funds.

The stock market plays a crucial role in the economy by providing liquidity, enabling price discovery, and facilitating the capital allocation process. It is often viewed as a barometer for economic health, with stock prices responding to economic indicators and news regarding companies and the market as a whole.