What is Stock Market ? Introduction to the Stock Market

The stock market is a platform like other markets such as clothes market, vegetable market etc,like in vegetable market a seller who want to sell his vegetables and a buyers who want to buy vegetables in physical form. In stock market a buyers and sellers trade shares(buy or sell in digital form in today’s era ) of publicly listed companies. It represents a marketplace for securities, including stocks (also called shares or equities), bonds, options, and other financial instruments. The stock market provides a way for companies to raise capital by selling ownership stakes in the form of shares to investors.

The primary stock market is where initial public offerings (IPOs) take place. During an IPO, a company offers its shares to the public for the first time. Once a stock is listed on an exchange, such as the National Stock Exchange(NSE) or BSE, it can be traded in the secondary market, where investors buy and sell shares among themselves.

The stock market serves several purposes:

1. Facilitating capital raising: Companies can issue shares to raise funds for expansion, research and development, or debt repayment.
2. Providing investment opportunities: Investors can purchase shares in companies, potentially benefiting from capital appreciation and dividends.
3. Establishing valuation: Stock prices reflect market sentiment and the perceived value of a company, providing a gauge of its financial health and prospects.

Stock prices are influenced by a variety of factors, including economic conditions, company performance, industry trends, geopolitical events, and investor sentiment. Investors engage in buying and selling stocks to capitalize on these price fluctuations, with the goal of making a profit.

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