What is Stock Market?



What is Stock Market?

The stock market is a place where buyers and sellers trade shares of publicly listed companies. It acts like a marketplace for ownership, where you can buy a small part (called a “share”) of a company and become a shareholder.

When a company needs to raise funds, it can issue shares to the public through an IPO (Initial Public Offering). Once listed, these shares are traded on stock exchanges such as the NSE (National Stock Exchange) or BSE (Bombay Stock Exchange) in India, or the NYSE (New York Stock Exchange) and NASDAQ in the U.S.

The value of shares keeps changing based on supply and demand, company performance, economic conditions, news, and global events. When prices rise, investors make profit by selling at a higher price. When they fall, losses can occur.

There are two main types of participants:

  1. Investors – Buy shares to hold for the long term.

  2. Traders – Buy/sell shares frequently for short-term gains.

People use the stock market to grow wealth, build long-term portfolios, or earn passive income through dividends.

However, the stock market also carries risks, so it's important to do research, manage risk, and invest wisely.

In short, the stock market is where ownership meets opportunity — but only the well-informed truly win.



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