Stock Market

The stock market is a collection of markets and exchanges where activities such as buying, selling, and issuing shares of publicly traded companies take place. It serves as a platform for investors to trade ownership in companies through stocks, which represent a claim on a company’s assets and earnings. The stock market enables companies to raise capital by issuing shares to the public, while investors can potentially earn returns through capital appreciation and dividends. Stock markets operate through various exchanges, such as the New York Stock Exchange (NYSE) and the Nasdaq, where transactions are facilitated by brokers and governed by regulations to ensure fair trading practices. It is a crucial component of the broader financial system, influencing economic activity and reflecting investor sentiment, as well as corporate performance.