How does stock market work?

Published : 31 Jan 2023

The stock market helps companies raise money to fund operations by selling shares of stock.

The stock gets listed on the exchanges via an IPO and is made available for the investors to publicly trade by buying and selling the shares.

The trading and investing activity helps create and sustain wealth for individual investors while going public helps the company raise capital for its requirements without taking on any debt.

 The performances of individual stocks vary widely over time, but taken as a whole the stock market has historically rewarded investors with average annual returns of around 10%

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