1. What Is the Stock Market?

The stock market is a public platform where investors buy and sell shares of publicly listed companies. It helps companies raise capital and offers investors opportunities to grow their money.

2. How Does the Stock Market Work?

Companies list their shares through IPOs (Initial Public Offerings). Investors trade these shares via stock exchanges like the NYSE, NASDAQ, or Pakistan Stock Exchange (PSX) based on supply and demand.

3. What Is a Stock?

A stock represents partial ownership in a company. When you buy a stock, you become a shareholder and can earn returns through price appreciation and dividends.

4. Types of Stocks

There are two main types: common stocks (with voting rights) and preferred stocks (which often offer fixed dividends but no voting rights).

5. What Is a Stock Exchange?

A stock exchange is a regulated marketplace where stocks are listed and traded. Examples include NYSE, NASDAQ, PSX (Pakistan), and LSE (London).

6. Stock Brokers

Stock brokers are licensed professionals or platforms that allow you to buy and sell shares. Examples include Robinhood, eToro, and Pakistan-based brokers like AKD or MCB Arif Habib.

7. Bulls vs Bears

A “bull market” means rising stock prices, while a “bear market” means declining prices. Investor confidence and economic indicators play major roles in these trends.

8. Risks of Investing in Stocks

Stock investing involves risks such as market volatility, company performance issues, or economic downturns. Diversification and research are key to risk management.

9. Long-Term vs Short-Term Investing

Short-term trading focuses on quick gains, while long-term investing focuses on steady wealth growth over years. Beginners are often advised to start long-term.

10. Tips for Beginners

Start small, invest in well-known companies, diversify your portfolio, understand market trends, and never invest money you can't afford to lose.