The stock market refers to a public marketplace where stocks, shares, and other securities are traded between investors. The stock market allows companies to raise capital by issuing shares of ownership, which are then bought and sold by investors.

When you buy a share of stock in a company, you become a part owner of that company. Your shares represent a portion of the company’s assets and earnings. The value of your shares will increase or decrease based on the company’s financial performance and market demand.

Stock prices are determined by supply and demand. When more people want to buy a stock than sell it, the price will go up. When more people want to sell a stock than buy it, the price will go down. This is why stock prices are constantly fluctuating.