The stock market is a place where shares of companies (also called stocks or equities) are bought and sold by investors. It’s like a big online marketplace for buying ownership in businesses.

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🔹 Key Concepts:

1. Shares/Stocks:

A share is a small unit of ownership in a company.

When you buy a stock, you become a partial owner of that company.

2. Stock Exchange:

A stock exchange is a platform where stocks are traded.

Examples:

India: NSE (National Stock Exchange), BSE (Bombay Stock Exchange)

USA: NYSE (New York Stock Exchange), NASDAQ

3. Investors:

People who buy and sell stocks are called investors or traders.

They earn money mainly through:

Price Increase (Capital Gain) – Buying low, selling high

Dividends – Some companies share profits with shareholders

4. Why Companies Sell Shares:

To raise money for expansion, new products, paying off debts, etc.

This is called an IPO (Initial Public Offering) when a company sells shares for the first time.

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🔹 Is It Risky?

Yes, because share prices can go up or down based on:

Company performance

Market news

Economic conditions

Global events

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🔹 Who Can Invest?

Anyone with a Demat account and trading account in India can invest.