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 take place. It serves as a platform for investors to trade ownership in businesses, providing a mechanism for companies to raise capital by offering shares to the public. The stock market facilitates price discovery through the interactions of buyers and sellers, reflecting the perceived value of companies based on various factors such as earnings, economic conditions, and investor sentiment. Key components of the stock market include stock exchanges, such as the New York Stock Exchange (NYSE) and the Nasdaq, where stocks are listed and traded, as well as over-the-counter (OTC) markets for trading shares not listed on major exchanges. The stock market plays a vital role in the economy by enabling liquidity, allowing for investment opportunities, and influencing economic growth through capital allocation.