The stock market is a system where people buy and sell shares of publicly traded companies.
Here’s the idea in simple terms:
Companies can sell pieces of ownership called shares or stock.
Investors buy and trade those shares on stock exchanges (such as the NYSE or Nasdaq).
The stock market is the collection of all those exchanges and all the buying/selling activity happening on them.
Companies use it to raise money to grow their business.
Investors use it to (hopefully) make money by:
Buying low and selling high
Earning dividends (some companies share profits with shareholders)
Stock prices change based on:
Supply and demand
Company performance
Economic conditions
News, investor expectations, and market psychology
