The stock market is a platform where investors buy and sell shares of publicly traded companies. It reflects the overall health of the economy.
Companies issue stocks to raise capital. Investors buy these stocks, hoping they increase in value over time. Profits are made through price appreciation and dividends.
– Stock: Ownership in a company. – Share: A unit of stock. – Dividend: Profit share paid to shareholderr.
– Common Stock: Voting rights, variable dividends. – Preferred Stock: No voting rights, fixed dividends, priority over common stock for dividends.
Major stock exchanges include the New York Stock Exchange (NYSE), NASDAQ, and the Tokyo Stock Exchange. Each has its unique characteristics and listed companies.
Stock prices fluctuate based on supply and demand, influenced by company performance, economic indicators, market sentiment, and global events.
– Bull Market: Prices are rising, investor confidence is high. – Bear Market: Prices are falling, investor confidence is low.
Indices like the S&P 500, Dow Jones, and NASDAQ Composite track the performance of a group of stocks, reflecting overall market trends.
Investing in stocks offers the potential for high returns but comes with risks, including market volatility and the potential loss of principal.