Category: Stock Market

The stock market is a collection of markets and exchanges where activities related to buying, selling, and issuing shares of publicly-held companies take place. It serves as a platform for investors to trade securities, which include stocks (equities), bonds, and other financial instruments.

In the stock market, investors can purchase shares of a company, becoming partial owners, and may benefit from capital appreciation and dividends. Companies use the stock market to raise capital for expansion and operations by selling shares to the public through initial public offerings (IPOs).

The stock market operates through various exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ, which provide the necessary infrastructure for trading. Prices of stocks are influenced by supply and demand dynamics, economic indicators, investor sentiment, and overall market trends.

Additionally, the stock market serves as an economic indicator, reflecting the health of the economy and investor confidence. It plays a critical role in the financial system, facilitating capital allocation and wealth creation.