Definition:
The stock market is a marketplace where investors buy and sell ownership shares of publicly listed companies.
When you buy a stock, you purchase a small ownership stake in a company.
Examples:
Apple
Tesla
Reliance Industries
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Why Stock Prices Rise:
Strong company profits
Positive news
High investor demand
New product launches
Economic growth
Example:
If investors believe NVIDIA will grow rapidly, more people buy its stock → price rises.
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Why Stock Prices Fall:
Example:
During the COVID-19 stock market crash many stock prices dropped due to uncertainty.
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Major Stock Exchanges:
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Why People Invest:
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Key Takeaway:
Stock prices move based on company performance, investor psychology, and economic conditions.
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