The stock market explained
The stock market is a familiar term to any casual investor, but what is it exactly? The stock market is a financial market where securities, such as stocks and bonds, are bought and sold. It is a crucial part of the global economy, as it provides companies with access to capital, and it allows investors to earn returns on their investments. There are many different stock markets around the world, and they can be broadly classified into two main categories: primary markets and secondary markets. Primary markets are where new securities are issued and sold to the public for the first time. Companies looking to raise capital will often issue new stocks or bonds, and these securities are then sold to investors through a primary market. The proceeds from the sale of the securities are used by the company to fund its operations and growth. Secondary markets are where existing securities are bought and sold among investors. Once securities have been issued in a primary market, they are ...