Stock Market Basics

The stock market is a place where people can buy and sell shares (stock) of companies. It exists to help companies generate funding for growth by offering ownership shares to investors while also providing an opportunity to build wealth. Think of it as a marketplace where businesses and investors meet.

There are individual investors, like you, who buy and sell stocks in an effort to reach their personal financial goals. There are also institutional investors, like banks and mutual funds, that manage large amounts of money and trade on behalf of others.

The stock market works through exchanges like the New York Stock Exchange (NYSE) or NASDAQ where stocks are listed to be bought. Investors use brokers or trading apps to buy or sell, which are matched with other buyers or sellers.

At its core, the stock market is about growth—helping companies expand and enabling investors to build personal wealth. By understanding its basic structure and key principles, you can begin to navigate this dynamic marketplace with confidence. Allio helps with this by providing you with real-time macroeconomic insights, market events, and tools to manage, track, and invest your funds wisely.