What is the Stock Market ?

“Imagine the stock market as a giant shopping mall, but instead of buying clothes or food, people buy and sell pieces of ownership in companies, called stocks or shares. When you buy a stock, you own a tiny part of that company. It’s like owning a small piece of a big company like Apple, Google, or Tata Motors. The value of these pieces changes all the time based on how well the company is doing, how the economy is performing, or even how the weather is! 

• Stock Exchanges: Just like stores in a mall, stocks are listed and sold on specific platforms called stock exchanges, like the New York Stock Exchange (NYSE) or Bombay Stock Exchange (BSE).

• Investors and Traders: People who buy and sell stocks are called investors (if they hold on to the stock for a long time) or traders (if they buy and sell stocks quickly for short-term profits).

• Why Companies Use the Stock Market: Companies sell shares to raise money to grow their business, develop new products, or expand into new markets.