Stock Market

The stock market refers to a collection of markets and exchanges where the buying, selling, and issuance of shares of publicly traded companies occurs. It serves as a platform for companies to raise capital by selling stocks to investors, who can then trade these shares among themselves. The stock market is a key component of the global economy, reflecting the financial health of companies and, by extension, the economy as a whole. It is characterized by various indices, such as the S&P 500 or the Dow Jones Industrial Average, which track the performance of selected stocks. The market operates through regulated exchanges where shares are traded either in physical locations or electronically. Investors participate in the stock market to seek profits through capital gains and dividends, often with varying degrees of risk based on market conditions and individual company performance.