What exactly does the stock market mean explain theraly like step by step if can thanks i really appreciate?

Question

bussiness money ??

Answer 1

Stocks represent ownership pieces of a company.  If you own a company's stock, you own a very small part of the company.  The stock market is a place where buyers and sellers who own and/or want stocks come to trade the stocks.  Just like a super market.

Answer 2

Stocks represent a portion of a company. If company A issues 100 stocks and you own 10 stocks, then, you own 10/100 or 10% of the company.

The stock market is a place where people can buy or sell stocks for publically traded companies. Publically traded companies are organizations that have at some point elected to make their stocks (or shares) easily accessible to the general public for buying and selling.

You can also own stocks of private companies. These companies have less stringent requirements for reporting and their shares are generally harder to sell (less liquid) because they cannot be traded in the stock market.

The advantage of a private company going public (initial public offering or ipo allows a company to go public) is that companies traded in the stock market become more liquid (easier to buy or sell your stake in the company) and liquidity has value. Would you rather own $100 or own a stone worth $100 that you need to sell? Most people chose the former and that is why liquid money tends to be worth more.

The advantage of not going public and keeping a company private is that you can maintain control of your company. Additionally, a private company can be secretive about information (in some industries this can be a competitive advantage).