Stock Market

The stock market is a collection of markets and exchanges where stocks (shares of ownership in businesses) are bought and sold. It serves as a platform for companies to raise capital by issuing shares to the public, and for investors to trade those shares among themselves. The stock market facilitates price discovery, allowing the valuation of companies based on supply and demand dynamics. It encompasses both primary markets, where new stock issues are sold, and secondary markets, where existing shares are traded.

The stock market is pivotal to the economy, providing companies with access to liquidity and investors with opportunities for capital appreciation and dividends. Key components of the stock market include stock exchanges, such as the New York Stock Exchange (NYSE) and NASDAQ, and stock indices, like the S&P 500 and Dow Jones Industrial Average, which track the performance of selected stocks. The market operates under regulations designed to maintain fair trading practices and protect investors. Overall, the stock market plays an essential role in facilitating economic growth and investment.