Glossary entry
The stock market is the network of venues and participants through which company shares are issued and traded. Primary transactions raise capital for issuers; secondary transactions transfer existing shares between investors. Prices reflect changing views about businesses and wider conditions, while exchanges, brokers, and clearing arrangements perform different roles in the trading process.
Illustrative example
Buying newly issued shares can provide money to a company. Buying those shares later from another investor generally transfers money to that seller instead.
What to consider
A rising market does not guarantee every share will rise. Individual companies can deteriorate or fail despite broad market strength.
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