The stock market is a platform where companies can raise capital by issuing stocks to the public. It's an essential tool for businesses, investors, and individuals alike.
A stock represents ownership in a company. When you buy a stock, you essentially become a shareholder and have the right to participate in the company's profits.
Types of Stocks
How the Stock Market Works
The stock market is open five days a week, and it's accessible through various channels such as online brokerages, investment firms, and institutional investors.
When you buy or sell stocks, you're trading on an exchange like the New York Stock Exchange (NYSE) or NASDAQ. The price of a stock fluctuates based on supply and demand.
Investor Requirements
- Age: 18 years old (in most countries)
- Income: Minimum investment amount varies depending on the brokerage
- Risk Tolerance: Stocks can be volatile; investors should assess their risk tolerance before investing