The stock market is a place where investors buy and sell shares of publicly traded companies. It is a network of stock exchanges where traders and investors buy and sell shares of publicly traded companies. The stock market allows companies to raise money by issuing shares of stock to the public, which investors can then buy and sell. The stock market is a component of a free-market economy because it enables democratized access to investor trading and exchange of capital. The leading U.S. stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq.

Here are some key points to understand about the stock market:

• Stocks: Stocks, also known as equities, represent fractional ownership in a company. When you buy stocks in a company, it means you own a part of that company. A share is the unit of stock; the more shares you buy, the more stock you have in a company. Stocks are issued by companies to raise money to grow their business.

• Stock Market: The term stock market refers to several exchanges in which shares of publicly held companies are bought and sold. Such financial activities are conducted through formal exchanges and via over-the-counter (OTC) marketplaces that operate under a defined set of regulations. Traders in the stock market buy or sell shares on one or more of the stock exchanges that are part of the overall stock market.

• Purpose: The stock market serves two very important purposes. The first is to provide capital to companies that they can use to fund and expand their businesses. The secondary purpose the stock market serves is to give investors the opportunity to share in the profits of publicly-traded companies.

Overall, the stock market is a place where in...