The stock market is a collection of marketplaces where stocks (shares of ownership in companies) are bought and sold. It serves as a platform for investors to trade shares of publicly listed companies, facilitating price discovery, liquidity, and investment opportunities. Stock markets operate through exchanges, which can be physical locations or electronic platforms where transactions occur. Participants include individual investors, institutional investors, and traders who aim to profit from changes in stock prices.

The stock market plays a crucial role in the economy by providing companies with access to capital for growth and expansion while offering investors the potential for financial returns and ownership in businesses. Additionally, stock prices reflect the collective sentiment regarding a company’s future performance and the economic environment. Overall, the stock market is an essential component of modern financial systems, enabling the movement of capital and the functioning of the economy.