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. This marketplace facilitates the exchange of ownership of company equity, as well as the trading of derivatives and other financial instruments. Stocks represent ownership claims on businesses, and the stock market serves as a platform for investors to purchase shares, which can increase or decrease in value based on the company’s performance and broader economic conditions. Investors can earn returns through capital gains (selling shares at a higher price than purchased) and dividends (payments made by companies to shareholders out of profits). The stock market plays a crucial role in the economy, providing companies with access to capital and enabling investors to build wealth. It includes various established exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ, where stocks are listed and traded. Market indices, such as the S&P 500 and Dow Jones Industrial Average, are used to gauge the overall performance of the stock market and the economy.