What is a Stock Market?
A stock market, also known as an investment market or securities market, is a platform where buyers and sellers of securities meet to trade stocks, bonds, mutual funds, and other financial instruments. It provides a way for individuals to invest in companies, earn income through dividends, and potentially grow their wealth over time.
Types of Stocks
- Common stock: Represents ownership in a company.
- Preferred stock: Has a higher claim on assets and dividends than common stock, but may have a lower return on investment.
- Growth stocks: Focus on companies with high growth potential.