What is a Stock Market?

The stock market, also known as the equity market, is a platform where companies raise capital by issuing shares to the public. These shares represent ownership in the company and can be bought and sold by investors.

Types of Stocks

1. Common Stock: Representing ownership in a company, common stock gives shareholders voting rights and potential dividends.
2. : Having a fixed dividend rate, preferred stock is typically offered at a lower price than common stock but has priority over common stock dividends.

Investment Strategies

Investors can use various strategies to manage their risk and potential returns. Some popular options include:

• Diversification**: Spreading investments across different asset classes, sectors, or geographic regions to reduce risk.
• Dollar-Cost Averaging**: Investing a fixed amount of money at regular intervals, regardless of market conditions, to reduce timing risks.