Stock Market Basics

What is the Stock Market?

The stock market is a marketplace where investors buy and sell shares of publicly traded companies. It's where companies raise capital and investors can potentially profit from the growth of these companies.

Key Concepts

  • Stocks/Shares: Ownership in a company
  • IPO: Initial Public Offering - when a company first goes public
  • Exchange: Platform where trading happens (e.g., NYSE, NASDAQ)
  • Broker: Intermediary who executes trades

How Trading Works

When you buy a stock, you're purchasing a small piece of ownership in that company. The price of the stock fluctuates based on supply and demand, company performance, and market conditions.

Live Demo: Stock Price Simulation