Stock Market

The stock market is a collection of markets and exchanges where activities related to the buying, selling, and issuance of shares of publicly traded companies occur. It serves as a platform for investors to trade equity securities (stocks) and provides companies with access to capital in exchange for giving investors a slice of ownership in the company. The stock market is primarily divided into the primary market, where new issues of stocks are sold through initial public offerings (IPOs), and the secondary market, where existing shares are traded among investors. Prices in the stock market are determined by supply and demand dynamics, influenced by various factors such as economic indicators, corporate performance, and investor sentiment. The stock market plays a crucial role in the global economy by facilitating capital accumulation and providing liquidity to investors, allowing them to enter and exit positions in companies easily.