The Stock Market: A Comprehensive Guide
The stock market is a platform where companies raise capital by issuing shares to the public. These shares represent ownership in the company and can be traded on various exchanges.
- Companies issue stocks to raise capital for business expansion, debt repayment, or new projects.
- Stock prices fluctuate based on supply and demand, market conditions, and investor sentiment.
- Economists and financial analysts use stock market data to make informed investment decisions.
Types of Stocks
There are several types of stocks, including:
- American style: gives shareholders voting rights and dividends.
- Dutch style: requires shareholder approval for major decisions.
- Standard style: has fewer restrictions on shareholder actions.
- Class A shares: offer greater voting power than standard shares.
Stock Exchanges
Major stock exchanges include:
- New York Stock Exchange (NYSE)