A stock market is a place where stocks, bonds and other securities are traded. A stock is the body that runs a stock market. Some stock markets are not run by any major body, but are coordinated by their dealers.
The stock exchange helps companies generate capital. As a primary market, it provides an avenue for them to sell new shares and bonds to investors. The companies can then use the proceeds from these sales to expand their businesses, develop new products, buy new equipment etc.
The stock market is also a means for investors to trade in the shares of companies they own among themselves. For example, one who bought the shares of company at a particular price may sell it to another investor. The investors are the ones who profit from this type of trade – companies do not.
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