STOCK MARKET

The Pulse of Global Commerce: Understanding the Stock Market The stock market is one of the most critical and fascinating components of the global financial system. Far from being an abstract casino, it is a sophisticated, highly organized marketplace where buyers and sellers trade shares of ownership—known as stocks or equities —in publicly listed companies. It serves as the vital engine for capital formation and wealth creation, making it indispensable to modern economies. Understanding its mechanics, history, and the forces that drive it is essential for anyone seeking financial literacy. How the Stock Market Works At its core, the stock market facilitates two primary activities: raising capital for companies and providing a venue for investors to trade ownership. Primary vs. Secondary Markets Primary Market: This is where a company first issues new stocks to the public to raise capital, typically through an Initial Public Offering (IPO) . When a company "goes public,...