Editing Stock Market (section)

=== How the Stock Market Works ===

# '''Initial Public Offering (IPO)''': When a company decides to go public, it issues an '''Initial Public Offering (IPO)''', allowing investors to purchase shares for the first time. Once shares are issued, they can be traded on a stock exchange.
# '''Stock Prices''': Stock prices fluctuate based on various factors, including company performance, supply and demand, investor sentiment, and broader economic conditions. When a company performs well, its stock price typically rises, and when it underperforms, the price may drop.
# '''Buying and Selling''': Investors can buy stocks through brokerage firms, which provide access to exchanges. When you purchase a stock, you own a portion of the company. Selling a stock at a higher price than you bought it results in a profit, while selling it at a lower price results in a loss.