A stock market exchange, such as the Nasdaq or the New York Stock Exchange, is how publicly traded corporations sell their stock. (Read more about the stock market's fundamentals here.) According to the SEC, corporations can raise money by offering stock to pay off debt, introduce new goods, or expand their operations.
Stock investment is a technique for investors to grow their money over time and outpace inflation. As a shareholder, you have the potential to profit from rising stock prices, receive dividend payments when the firm distributes its profits, and in some cases, participate in shareholder elections.
Shares can be purchased and sold by investors through stockbrokers. The supply and demand of each company's shares are monitored by the stock exchanges, and this directly impacts the price of the stock.
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