Understanding the Stock Market

The stock market is where investors buy and sell ownership in companies, called shares or stocks. When a company wants to raise capital, it offers its shares to the public through an IPO (Initial Public Offering). Once listed, shares are traded on stock exchanges like NSE, BSE, or NYSE.
Owning a stock means you own a part of that company. If the company performs well, its stock price usually rises, allowing investors to earn profits through capital gains. Some companies also pay dividends, which are a portion of profits shared with shareholders.