The stock market is where ownership of companies is bought and sold in real-time. When you buy a share of Apple, you literally become a part-owner of the company. Stock markets serve two functions: primary market (companies raise new capital through IPOs) and secondary market (investors trade existing shares among themselves).
Major exchanges: NYSE ($28 trillion market cap), NASDAQ ($24 trillion), BSE/NSE India ($5 trillion), Shanghai, Tokyo, and London. The S&P 500 and Nifty 50 are the most followed indices. Historically, stocks have delivered 10-12% annual returns — the best-performing major asset class over the long run.
Modern stock markets are almost entirely electronic — orders execute in microseconds. Gone are the days of shouting traders on exchange floors. Retail investors now have the same access as institutions through apps like Zerodha, Groww, and Robinhood. India added 10+ crore demat accounts between 2020-2024, bringing total retail participation to unprecedented levels.