The stock market is an auction-based exchange system that facilitates the buying and selling of equity in publicly traded companies. The stock market enables investors to purchase shares of companies by issuing stocks and selling them to other investors. Stocks represent fractional ownership of a company, allowing individuals to take part in the company's profits, dividends and other economic rewards. Stock prices are either determined by buyers and sellers in the open market, or they can be determined by corporate management of the issuing company. It is important to remember that when investing in the stock market, you should be aware of the risk-return trade-off and diversify your portfolio to minimize the risk of investments.
See also: financial system, economic growth, economic system, income inequality