Stock Market

The stock market is a collection of markets and exchanges where activities like buying, selling, and issuing shares of publicly traded companies occur. It serves as a platform for individuals and institutional investors to trade ownership in these companies through stocks, which represent shares of ownership. The stock market is a crucial component of the broader financial system, facilitating capital raising for companies and providing liquidity for investors. Prices of stocks are determined by supply and demand dynamics and can fluctuate based on various factors, including economic indicators, company performance, and investor sentiment. Major stock markets include exchanges such as the New York Stock Exchange (NYSE) and the Nasdaq. The stock market plays a significant role in the economy, as it reflects the overall economic health and can influence consumer confidence and investment decisions.