The stock market is where shares of publicly traded companies are bought and sold. It is not a single place. It is a network of exchanges, brokers, and electronic systems. The New York Stock Exchange and Nasdaq are two of the largest. Trading happens in milliseconds, around the clock in some markets.

Companies list on an exchange to raise capital. Investors buy shares hoping the price will rise or that they will receive dividends. Prices move based on earnings, news, interest rates, and sentiment. Sometimes they move for reasons no one can explain.

The market is volatile. It can rise for years and then fall sharply in weeks. Investors who panic and sell lock in losses. Those who stay invested over decades have historically done well, though past performance does not guarantee future results. The market rewards patience more than prediction.

Key concepts

• Stock exchanges
• Bull and bear markets
• Market indices like the S&P 500
• Volatility
• Long-term investing