What Is Stock Market: Understanding the Heart of Global Finance
The stock market is the backbone of the global financial system. It’s where companies raise money to grow, and investors buy and sell shares to earn profits. Understanding what is stock market helps you grasp how economies move, businesses expand, and individuals build wealth over time.
What Is Stock Market and How Does It Work
The stock market is a marketplace where buyers and sellers trade shares of publicly listed companies. When a company wants to raise money, it issues shares to the public through an Initial Public Offering (IPO). Once listed, these shares are traded daily on stock exchanges such as the New York Stock Exchange (NYSE) or NASDAQ.
Each share represents a small ownership stake in a company. When the company grows and becomes profitable, the share’s value often rises — meaning investors can sell it at a higher price for a profit.
In short, the stock market connects companies that need capital with inv