What is the Stock Market? – Definition of Stock Market

Stock Market

Definition of Stock Market

A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as those only traded privately.

Trivia : Also known as the Equity Market, the Stock Market is one of the most vital components of a free-market economy.

Companies sell stock to get money to –
  • Create new products
  • Improve the products they have
  • Hire more employees
  • Research better ways to make things
  • Enlarge or modernize their buildings

In the stocks market, prices rise and fall every day. When you invest in the stocks market, you are hoping that over the years, the stock will become much more valuable than the price you paid for it.

Definition of Stock Market