What is the stock market and how does it work?

The stock market is a marketplace where publicly traded companies' shares are bought and sold. It is also known as the equity market. Investors buy shares of a company, which represents a small portion of ownership in the company.

The stock market works on the basis of supply and demand. When there are more buyers than sellers, the price of a stock increases. Conversely, when there are more sellers than buyers, the price of a stock decreases. The stock market is also influenced by various factors such as economic indicators, geopolitical events, and companyspecific news.

The stock market operates through stock exchanges, which are platforms where buyers and sellers come together to trade shares. Some of the major stock exchanges in the world include the New York Stock Exchange (NYSE), Nasdaq, London Stock Exchange (LSE), and Tokyo Stock Exchange (TSE).

In summary, the stock market is a place where investors can buy and sell shares of publicly traded companies, and its prices are influenced by various factors and operate through stock exchanges.