The stock market provides a platform for buying and selling shares of companies from "summary" of Financial Markets and Institutions, Global Edition by Frederic S. Mishkin,Stanley G. Eakins
The stock market is a place where investors can buy and sell ownership shares of companies. When a company decides to "go public" and issue stock to the public for the first time, it typically does so through an initial public offering (IPO). In an IPO, the company raises capital by selling shares to investors. These shares represent ownership in the company and entitle the shareholder to a portion of the company's profits. Once a company's stock is trading on the stock market, investors can buy and sell shares in that company through a stock exchange. Stock exchanges provide a platform for buyers and sellers to come together and agree on a price for the shares. The most well-known stock exchanges in the United States are the New York Stock Exchange (NYSE) and the Nasdaq. Investors participate in the stock mark...
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