The stock market refers to the place where companies sell shares—a piece of ownership in a company—to investors. There are several exchanges in the world, including the NYSE and Nasdaq. They are regulated by various national and state laws to ensure fair trading practices. They also provide transparency, meaning that information on stock prices is easily available to anyone who wants it (as long as they can afford the fees of brokers and trading platforms).
In its broadest sense, the stock market is a matchmaker for investors and traders. It pairs people who want to buy a share with those who want to sell it, and then facilitates the transaction through brokers. These people can be individual investors seeking to buy or sell through an initial public offering or a direct listing, or they can be financial institutions like banks or investment firms.
Stock markets are not only a tool for raising capital, but also reflect larger socioeconomic trends. When a stock price rises, it can imply that consumers will have more money to spend, that businesses are doing better than expected, or that there are other positive economic circumstances.
Similarly, when a stock price falls, it can be because investors believe that the business is doing worse than expected or that there are other negative economic conditions. This is why it is so important for individuals to understand the lingo and the market in order to make wise decisions about where and how to invest.