Understanding the Stock Market: Key Features and Functions

The stock market is a vital component of the global financial system, facilitating the buying and selling of securities such as stocks and bonds. It enables companies to raise capital through initial public offerings (IPOs) and provides a platform for the trading of existing securities on stock exchanges and over-the-counter markets. Key features include primary and secondary markets, various types of securities, and market indices like the S&P 500 and Dow Jones. The market is regulated by entities like the SEC and FINRA to ensure transparency and fairness. Participants include individual investors, institutional investors, traders, and market makers. Understanding these elements is crucial for navigating the market and making informed investment decisions.