Stock Market

The stock market refers to the collection of markets and exchanges where activities such as buying, selling, and issuing shares of publicly-traded companies occur. It serves as a platform for investors to trade equity securities and derivatives based on them. The stock market is a key component of the global economy, providing companies with access to capital in exchange for giving investors a slice of ownership in the company’s profits. It operates on the principles of supply and demand, affecting stock prices and overall market performance. Stocks are typically traded on stock exchanges, which are regulated marketplaces, and can also be sold over-the-counter (OTC). The stock market is often used as an economic barometer, reflecting investor sentiment and economic health. Major stock indices, such as the S&P 500 and the Dow Jones Industrial Average, track the performance of specific groups of stocks to provide insights into market trends and economic conditions.