Stock markets are marketplaces where investors buy and sell securities like shares. These markets can be found on a variety of exchanges around the world, though many focus on specific kinds of investments. Investors trade on these markets to generate cash for themselves and/or to help grow their portfolio. Stocks are a popular investment option because of the potential for high returns and lower risk than other assets like real estate or gold.
Stock prices change daily because of market forces. For example, if more people want to buy a stock than sell it, the price will go up. This is because the stock market is a marketplace, and it works just like any other marketplace: there are buyers and sellers.
There are also many different things that can influence the price of a stock, including news events and company earnings reports. Positive news normally causes individuals to buy stocks, while negative news usually causes people to sell their shares.
Regardless of the reason, stock prices can swing up and down very quickly, especially when big companies are involved. This is why it’s important for individuals to stay informed about the latest news and trends in the stock market and always keep a long-term perspective. It’s also a good idea to diversify your investments by investing in a variety of sectors, asset classes and countries so that you can reduce your risk overall.