Stock Market
The stock market is a marketplace where shares of publicly traded companies are bought and sold. It provides a platform for companies to raise capital by issuing shares to investors, while giving investors the opportunity to own a portion of the company and potentially earn returns through price appreciation or dividends. Stock exchanges, such as the New York Stock Exchange (NYSE) and NASDAQ, are key components of the stock market.
Example
An investor buys shares of Apple Inc. on the NASDAQ stock exchange, becoming a shareholder and benefiting from potential price appreciation and dividends.
Key points
• A marketplace where shares of publicly traded companies are bought and sold.
• Allows companies to raise capital and investors to earn returns.
• Key exchanges include NYSE and NASDAQ.
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