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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.