The Stock Market: A Brief Overview
The stock market is a platform where companies raise capital by issuing shares to the public, allowing individuals and institutions to invest in their businesses. The primary function of the stock market is to facilitate the buying and selling of securities, enabling investors to potentially earn profits through dividends, interest, or capital appreciation.
Indices such as the Dow Jones Industrial Average (DJIA) and the S&P 500 track the performance of a basket of stocks within a specific industry or sector. These indices provide a way to gauge market sentiment and make informed investment decisions.