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Very simply stated, a Stock Marketis a place where shares (of companies), stocks (money invested) and bonds (a certificate of debt) are bought and sold by professional stockbrokers.
Wiki User
∙ 11y ago
Wiki User
∙ 13y agoThe classic purpose is to make money or to get money. Hopefully the stock was bought at a lower price than the selling price, hence a profit is mad. Even if that is not the case, the owner may need the money and choose to sell at a loss.
Selling stock can also lower the price of the stock. If a person had a lot of stock in a certain company, that person could sell all of the stock and drive the price down. This could be a financial ploy for an unknown reason.
Wiki User
∙ 13y agoIt gives an individual a portion of ownership of a corporation.
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