The equity market, commonly referred to as the stock market, is where shares of publicly traded companies are bought and sold. When an investor purchases a share in a company, they are buying a small ownership stake, known as equity, in that company. These shares are traded on stock exchanges, such as the New York Stock Exchange (NYSE) or London Stock Exchange (LSE), or through over-the-counter (OTC) markets. The stock market is a crucial component of the financial system, enabling companies to raise capital and investors to grow wealth.
How Equity Markets Work
Companies can raise capital by issuing shares through an Initial Public Offering (...