The stock market is a collection of markets and exchanges where activities related to buying, selling, and issuing shares of publicly traded companies occur. It serves as a platform for investors to trade stock and other securities, allowing companies to raise capital by selling shares to the public. The stock market is characterized by various participants, including individual investors, institutional investors, and brokers, who execute trades on behalf of themselves or clients.
Stocks represent ownership in a company, and their prices fluctuate based on supply and demand, company performance, economic indicators, investor sentiment, and various macroeconomic factors. The stock market includes primary markets, where new shares are issued through initial public offerings (IPOs), and secondary markets, where existing shares are traded among investors. Major stock exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ, facilitate these trades and provide a framework for evaluating stock performance.
The functioning of the stock market is essential for economic growth, as it provides businesses with access to capital and gives investors the opportunity to invest in and profit from the growth of companies.
Investors worldwide brace themselves for a flurry of dividend payments as the end of August approaches. Missing out on potential earnings is a risk as key companies set looming ex-dividend…