The stock market is a public marketplace where shares of publicly traded companies are bought and sold. It primarily serves two key functions: providing companies with access to capital in exchange for giving investors a chance to share in the company’s profits and growth. The stock market facilitates the trading of various types of securities, including stocks (equity), bonds (debt), and derivatives.
Investors can trade shares either through organized exchanges, like the New York Stock Exchange (NYSE) or NASDAQ, or over-the-counter (OTC) markets. Prices of stocks are determined by supply and demand dynamics, reflecting investors’ perceptions of a company’s performance and broader economic conditions.
The stock market is an essential component of the global economy, influencing economic indicators and providing insights into the health of individual sectors and the economy as a whole. It is characterized by its volatility, with prices fluctuating based on numerous factors, including financial results, market trends, and geopolitical events. Investors often use the stock market as a means to build wealth over time, though it also carries risks, including the potential for loss.
ASML's stock increased by 4.3% after reporting strong Q4 earnings. The company exceeded earnings expectations, reporting €6.85 per share compared to the forecasted €6.68. Quarterly revenue reached €9.2 billion, surpassing…