What is Stock Market ?
The stock market is a marketplace where stocks, bonds, and other securities are traded. It is also known as the equity market or the share market. Companies issue stocks, which represent ownership in the company, to raise capital for growth and expansion. Investors buy these stocks, and their ownership is represented by shares.
The stock market provides a platform for companies to raise funds and for investors to buy and sell securities. The market can be a place where people can earn money by investing in companies that are expected to grow and increase in value over time. However, it can also be risky, as the value of stocks can fluctuate based on a variety of factors such as company performance, economic conditions, and political events. The stock market is an important part of the global economy and plays a crucial role in the growth of businesses and the wealth of individuals.
The stock market works by providing a platform for companies to issue stocks and for investors to buy and sell those stocks. When a company wants to raise capital, it can issue stocks and sell them to the public through an initial public offering (IPO) or by issuing additional shares in the secondary market. Investors can buy these stocks through a stock exchange, such as the New York Stock Exchange (NYSE) or the NASDAQ.
The stock market is a marketplace where buyers and sellers come together to exchange securities. Buyers place orders to buy stocks at a certain price, while sellers place orders to sell their stocks at a certain price. These orders are matched by a broker or an exchange, and the transaction takes place at the agreed-upon price.
The price of a stock is determined by supply and demand. If there are more buyers than sellers, the price of the stock will increase, and if there are more sellers than buyers, the price will decrease. The value of a stock is also affected by various factors such as the company’s financial performance, economic conditions, industry trends, and geopolitical events.
Investors can make money in the stock market by buying stocks that increase in value over time or by earning dividends, which are payments made by companies to their shareholders. However, investing in the stock market also comes with risks, as the value of stocks can fluctuate and the performance of individual companies can be unpredictable.