Stock Market
What Is Stock Market?
The stock market is a financial marketplace where stocks (shares of ownership in a company) are bought and sold. Companies sell stocks to raise money for operations and expansion, and individuals and institutions buy stocks as an investment, with the goal of earning a return through dividends (a portion of a company's profits paid to shareholders) and/or capital appreciation (an increase in the stock's value). The stock market is often divided into two main categories: the primary market, where new stocks are issued, and the secondary market, where existing stocks are traded. The most well-known stock market in the United States is the New York Stock Exchange (NYSE), but there are other stock markets around the world, such as the NASDAQ and the Tokyo Stock Exchange.