The stock market refers to public markets that exists for issuing, buying and selling stock that trade on a stock exchange or over the country exchange. Stock also known as equities and represent fractional ownership in a company and stock market is the place where investor buy & sell ownership is such investable asset.

Purpose of stock market.

The stock market represent the two very important purposes. The first is to provide capital to companies that they can use to fund and expend there business. If a company issues 1 million shares of stock that initially sell for $10million of capital that it can use to grow it's business. By offering stock shares instead of borrowing the capital needed for expansion the company avoids incurring debts and paying interest charges on that debt.

2'nd purpose of stock market.

The second purpose of stock market serves is to give investors. The opportunity to share in the profit of publicly traded company. Investor can profit from stock buying in one of two ways. Some stocks pay regular dividend. The other way investor can profit from buying stock is by selling there stock for a profit if stock prices increase from there purchase price. The investors get 50% of profit on investment by selling there share's.

• Hope you would like this information provided by Alisha9 about stock market what actually it is.

THANKS FOR READING MY ARTICLE.