Stock Market Basics

What Is Stock Market ?

The stock market is a platform where shares of publicly traded companies are bought and sold. It plays a crucial role in the economy by allowing companies to raise capital from investors and providing individuals with opportunities to invest in business.

Stock Market Basics
Stock Market Basics

Some key points about the stock market are:

  1. Trading Shares: Investors buy and sell shares of companies, this represent ownership in those companies.
  2. Stock Exchanges: The name of the Major stock exchanges include the New York Stock Exchange (NYSE) and the NASDAQ in the U.S., and the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India.
  3. Market Indices: Indices like the Dow Jones Industrial Average, S&P 500, and Nifty 50 track the performance of a group of stocks, giving an overall view of market trends.
  4. Investment Opportunities: The stock market offers various investment opportunities, like individual stocks , mutual funds and exchange-traded funds (ETFs).
  5. Economic Indicator: The stock market is often seen as an indicator of economic health, reflecting investor confidence and economic trends.