How the Stock Market Works: The Basics
Topic: How the Stock Market Works
What it is
The stock market is a place where people and institutions buy and sell ownership stakes in companies. A share represents a small ownership interest in a company, so its value can rise or fall as buyers and sellers respond to new information and changing expectations.
There are two main parts. In the primary market, a company raises money by offering shares to investors, for example through an IPO. In…
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