What is Stock
What is Share Market ?
Share market, also known as stock market, is a platform where investors buy and sell shares and other securities of publicly listed companies. The stock market provides companies with access to capital in exchange for giving investors a slice of ownership in the company. The purpose of the stock market is to facilitate the exchange of securities between buyers and sellers, reducing the risks of investing.
The stock market works by providing companies with a platform to raise money from investors, known as equity financing. Companies list their securities on a stock exchange, and buyers and sellers can trade these securities at a price determined by the market. Companies can also use the stock market to raise debt by issuing bonds, which are fixed income instruments.
When investors buy shares of a company, they become part owners of that company, and their ownership is represented by the number of shares they own. When the company performs well, the value of the shares rises, and investors can make a profit by selling their shares at a higher price than what they paid for them. Likewise, when the company performs poorly, the value of the shares may fall, and investors may take a loss if they sell their shares at a lower price than what they paid for them.
Stock markets are regulated by government agencies, such as the Securities and Exchange Commission (SEC) in the United States. These regulations are designed to protect investors from fraud and other unethical practices. To trade on the stock market, investors must go through a brokerage firm or investment advisor. These firms provide investors with access to the stock market and advice on which stocks to buy and sell.