How to stock market works??
The stock market is a complex financial system where investors buy and sell ownership shares (stocks) in publicly traded companies. Here's a simplified overview of how it works: 1. ** Companies Go Public: ** A company decides to raise capital by offering ownership shares to the public. This process is called an Initial Public Offering (IPO). When a company goes public, it issues shares of stock that can be bought and sold on stock exchanges. 2. ** Stock Exchanges:* * These are centralized markets where stocks are bought and sold. Examples include the New York Stock Exchange (NYSE) and the Nasdaq. Buyers and sellers are connected through these exchanges, which provide a platform for trading. 3. ** Brokers and Brokerage Accounts:** I ndividual investors typically don't buy stocks directly from the stock exchange. Instead, they use brokerage accounts provided by brokerage firms. These firms act as intermediaries, facilitating the buying and selling of stocks on behalf of their cl...