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The stock market, also known as the share market or equity market, is a public marketplace where stocks, bonds, and other securities are bought and sold. It provides investors with a platform to buy ownership in companies listed on the stock exchange, and in return, they get a share of the company’s profits through dividends and capital gains.
The stock market operates through stock exchanges, which act as intermediaries between buyers and sellers of securities. Some of the well-known stock exchanges around the world include the New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange, Tokyo Stock Exchange, and Shanghai Stock Exchange.
The value of a stock is determined by the forces of supply and demand. If more people are interested in buying a particular stock, its price will rise, and if there are more sellers than buyers, the price will fall.
Investors can participate in the stock market through a variety of investment vehicles, such as individual stocks, mutual funds, exchange-traded funds (ETFs), and index funds. However, investing in the stock market carries risks, and investors should always do their research and seek professional advice before investing.