The stock market provides a platform for companies to raise capital by issuing shares, which can then be bought by individual or institutional investors. The stock market is an important indicator of the economy's health and is closely monitored by investors, economists, and policymakers.
The stock market is typically divided into two main categories: primary markets and secondary markets. The primary market is where new securities are issued, while the secondary market is where existing securities are traded among investors.
There are several major stock exchanges in the world, including the New York Stock Exchange (NYSE) and the Nasdaq in the United States, the Tokyo Stock Exchange in Japan, and the London Stock Exchange in the United Kingdom. The stock market can be a volatile and unpredictable place, and investors must carefully analyze market trends and individual stocks to make informed investment decisions.