The stock market is a platform where buyers and sellers can trade stocks of publicly traded companies. The stock market, also known as the equity market or stock exchange, is a system where publicly traded companies can sell part ownership of their company to investors to “share” in the profits or losses.

The stock market plays an important role in the economy by providing companies with a means of raising capital for growth, inventory, infrastructure, and other business activities. Additionally, the stock market provides investors with an opportunity to participate in the growth of companies by buying and selling stocks.

The stock market can be influenced by many factors such as economic conditions, company performance, geopolitical events, and investor’s feelings. As a result, the value of stocks can be volatile and subject to fluctuations over time

why do stocks exist?

Stocks exist as a way for companies to raise capital by selling ownership stakes in the company to investors. When an individual buys a stock, they are essentially buying a small portion of ownership in the company.

Companies issue stocks to raise funds for various purposes such as expanding their business, investing in new projects, paying off debt, or rewarding shareholders with dividends.

For investors, stocks offer the potential for long-term capital appreciation and the opportunity to share in the company's profits through dividends. Additionally, stocks provide investors with liquidity, meaning they can be easily bought and sold on stock exchanges and quickly cased out, making them a popular investment option.

Overall, stocks exist as a way for companies to raise capital and for investors to potentially earn a return on their investment by owning a piece of the company's ownership.

What is A Publicly traded company?

A publicly traded company is a business that has issued shares of stock that can be bought and sold by the general public through a stock exchange or over-the-counter market. Publicly traded companies are also known as "public companies" or "listed companies."

Companies can go public by offering a portion of their stocks for sale on a stock exchange through an initial public offering (IPO), which allows them to raise capital from investors by selling shares of ownership. The two most popular stock exchanges in the USA are the New York Stock Exchange (NYSE) and the Nasdaq.

Why invest in a publicly traded company?

Publicly traded companies face greater scrutiny and reporting requirements than privately held companies, including the need to file regular financial reports and hold regular shareholder meetings.

Publicly traded companies are subject to regulation and oversight by government agencies, including the Securities and Exchange Commission (SEC) in the United States.

Overall, they are more transparent than privately held companies and held to a consistent set of standards that allows you to quickly decide if the company is good to invest in or not.