What exactly is the stock market ??
Stock market
A place where you buy and sell pieces of companies.
How it works:
- Stocks: when you buy a stock, you are buying a tiny piece of a company
- Exchange: trading happens on places like the NYSE or Nasdaq, think of them as giant digital marketplaces. in Sri Lanka it’s the CSE- Colombo Stock Exchange
- Price change: stock prices go up/down based on supply & demand. good news for a company? more people buy, price goes up. bad news? people sell, price drops.
Main goal for most people: Buy low, sell high, or hold long- term and collect dividends – profit payments some companies give shareholders.
stock market is basically how regular people can invest in big businesses without starting their own company.