Lending Money Instead of Owning a Business: What Bonds Are?
A bond is a fixed-income instrument representing a loan made by an investor to a…
A stock market (or equity market) is the broader ecosystem encompassing the network of exchanges, institutions, and electronic platforms where buyers and sellers trade financial instruments—primarily shares of publicly owned companies. It provides businesses with a mechanism to raise capital from the public to finance growth and operations, while offering investors an avenue to build wealth through dividend income and asset appreciation. Regulated by government authorities to ensure fair practices and transparency, the stock market plays a vital role in the global economy by pricing risk, enabling efficient capital allocation, and serving as a key indicator of overall economic health.