Stock Market

The stock market is a marketplace where shares of publicly traded companies are bought and sold. It serves as a platform for investors to purchase ownership stakes in companies through the purchase of stocks, which represent a claim on the company’s assets and earnings. The stock market operates through exchanges, such as the New York Stock Exchange (NYSE) and Nasdaq, where stock transactions occur. Prices of stocks fluctuate based on supply and demand dynamics, investor sentiment, and other economic factors. The stock market is a crucial component of the global economy, facilitating capital formation, providing liquidity to investors, and serving as an indicator of overall economic health. Investors participate in the stock market for various reasons, including the potential for capital growth, income through dividends, and portfolio diversification.