The stock market refers to the collection of markets and exchanges where the issuing and trading of equities 

It provides companies with access to capital in exchange for giving investors a slice of ownership in the company through stocks.  

Primary market: Where new securities are issued and sold for the first time.  

 

This typically involves Initial Public Offerings (IPOs) where companies raise capital by offering shares to the public. 

Secondary market: Where existing securities are traded among investors, such as on stock exchanges like the New York Stock Exchange (NYSE) or NASDAQ. 

The stock market serves several functions, including providing liquidity  

Participants in the stock market include individual investors, institutional investors (such as mutual funds, pension funds, and insurance companies). 

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the stock market plays a crucial role in the global economy by facilitating capital formation, enabling investors to participate in corporate growth, and serving as a barometer of economic health and investor sentiment.