Stock market

 📈 What is the Stock Market?

The stock market is a place where people buy and sell shares (stocks) of companies. When you buy a stock, you become a partial owner of that company. �

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In simple words:

👉 It is a marketplace for ownership of companies.

🏢 How the Stock Market Works

Companies list their shares on stock exchanges.

Investors (like you and me) buy and sell those shares.

Prices change based on demand and supply. �

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✔ If more people want to buy → price goes up 📈

✔ If more people want to sell → price goes down 📉

This process is called price discovery, where the market decides the value of a company. �

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🏦 Major Stock Exchanges

In India:

National Stock Exchange (NSE)

Bombay Stock Exchange (BSE)

Globally:

New York Stock Exchange (NYSE)

Nasdaq

These exchanges are platforms where trading happens. �

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📊 Types of Stock Market

1. Primary Market

Companies issue shares for the first time (IPO)

Investors buy directly from the company

2. Secondary Market

Shares are traded between investors

This is where daily trading happens

💰 Why Stock Market is Important

Helps companies raise money for growth

Helps investors earn profit and build wealth

Reflects the performance of major companies

Plays a role in the overall economy

📉 Key Terms You Should Know

Shares – Units of ownership

Index – Group of stocks (like Sensex, Nifty)

Bull Market – Rising prices

Bear Market – Falling prices

⚡ Simple Example

If you buy shares of a company at ₹100 and later sell at ₹150 →

👉 Your profit = ₹50 per share

📌 Conclusion

The stock market is a powerful financial system where companies grow and investors earn. However, it also involves risk, so knowledge and patience are very important