Understanding the Stock Market A Comprehensive Guide to How It Works

The stock market work is a complex financial system where publicly traded company shares are bought and sold, providing a platform for companies to raise capital and investors to earn returns. Here's an in-depth look at how it operates. A company's journey in the stock market begins with an Initial Public Offering (IPO). When a company goes public, it offers shares for the first time. This process involves underwriting by investment banks, setting an initial price, and listing on a stock exchange. The capital raised through an IPO helps the company to fund its operations, expand, and innovate.