Stock market
A stock market is a marketplace where shares of publicly traded companies are bought and sold.
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Ritu Chopra
First written 7 Dec 2023
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A stock market is a system of exchanges where shares — units of ownership in companies — are bought and sold by investors.
How it works
Companies raise money by selling shares to the public. Their prices rise and fall based on supply, demand and the company's performance. Major exchanges include the New York Stock Exchange and, in India, the BSE and NSE.
Importance
Stock markets help companies raise capital and allow people to invest and grow their savings, though prices can be volatile.
Frequently asked questions
What is a stock market?
A marketplace for buying and selling company shares.
What are India's main stock exchanges?
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).