What is the Stock Market?
Learn how companies raise money and how investors build wealth by buying stocks.
Key Concepts Explained
What is a Stock?
A stock (or share) represents a fraction of ownership in a company. When you buy a stock, you become a part-owner (shareholder).
How the Stock Market Works
It's a marketplace where shares of publicly listed companies are bought and sold. It facilitates capital raising for companies and investment opportunities for individuals.
Role of Exchanges (e.g., NSE, BSE)
Stock exchanges are organized platforms that provide the infrastructure for trading stocks, ensuring transparency and regulatory oversight.
Risks vs. Rewards
Stocks offer potential for high returns (capital appreciation, dividends) but also come with risks like market volatility and company-specific issues.
Long-Term Wealth Creation
Historically, investing in the stock market over the long term has been a powerful way to build wealth, outpacing inflation and other asset classes.
Important Note
Investing in the stock market involves risks. It's essential to do your research and understand your risk tolerance before investing. This guide is for educational purposes.