WHAT IS STOCK MARKET?
Stock market , also known as the equity market or share market, is a financial marketplace where buyers and sellers come together to trade ownership in publicly traded companies. It is a crucial component of the global financial system and plays a significant role in the economy. Here's a comprehensive overview of the stock market: 1. Purpose and Function: Capital Raising: One of the primary functions of the stock market is to allow companies to raise capital by selling shares (equity) of their ownership to investors. This helps companies fund their operations, expansion, and development. Ownership Transfer: Investors (individuals and institutions) buy and sell shares in the stock market to gain ownership stakes in publicly traded companies. They can profit from the appreciation in share prices or receive dividends. Price Discovery: Stock markets provide a platform where the prices of securities are determined by supply and demand. This price discovery mechanism helps determine the...