A stock market is a collection of publicly-listed companies. The prices of these stocks fluctuate based on supply and demand. If more investors are buying into a company, its price will rise. If investors are selling shares of a company, its price will fall. These factors are determined by investor sentiment, economic conditions, and a variety of other considerations.

When you hear the media referring to the stock market, they’re generally talking about the performance of specific indexes like the Dow Jones Industrial Average or the S&P 500. The performance of these indexes is a good gauge of the overall health of the stock market, and most investments are measured against them.

Publicly-listed companies issue stock, or equities, in order to raise money to grow their businesses. Each share represents a partial ownership of the company. Typically, these shares come with voting rights and the potential to receive dividends (profits) from the company. The value of a company’s outstanding shares is known as its market capitalization.

The stock market is a trading exchange where buyers and sellers meet to trade securities. The New York Stock Exchange is one of the world’s oldest and most famous examples, although today a large proportion of stock market transactions are conducted electronically. The market’s function is to match stock sellers with interested buyers. This is accomplished by matching a buyer’s “bid” price with the seller’s “ask” price. In addition, the market provides real-time trading information on the listed securities.