The stock market is a system where stocks or shares of publicly traded companies are bought and sold by investors. A stock represents a share of ownership in a company, and owning stocks allows investors to benefit from the company’s profits and growth.
The stock market provides a platform for companies to raise funds by selling shares to the public, and investors can buy and sell shares of these companies through stock exchanges or other trading platforms.
The value of stocks fluctuates based on various factors such as company earnings, economic indicators, and political events. Investors can profit from buying low and selling high or by receiving dividends, which are a portion of the company’s profits paid to shareholders.
The stock market plays a critical role in the economy by providing companies with access to capital and investors with the opportunity to earn returns on their investments. It also serves as an indicator of the overall health of the economy.