The stock market is a platform where companies raise capital by issuing stocks, and investors buy and sell these shares to earn returns. In the United States, the main government agencies responsible for regulating and overseeing the stock market are the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Key Players in the Stock Market:
- Securities and Exchange Commission (SEC): Regulates the buying and selling of securities, including stocks, bonds, and mutual funds.
- Financial Industry Regulatory Authority (FINRA): Enforces rules and regulations for brokerage firms and other financial institutions.
- Bureau of Economic Analysis (BEA): Provides economic data and analysis to inform investment decisions.
Investing in the Stock Market:
Investing in the stock market involves buying and holding shares of companies, with the goal of earning a profit as their value increases. This can be achieved through various strategies, including buying stocks, ETFs, or mutual funds.