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The stock market is the place where the shares of one person are being transferred to another person, so that, the margin amount might be a profit. Also, the companies make their shares traded public to attract investors for their future investment.
Stock market gives investors an opportunity to share in the profits of major companies
we need stock market to sell or buy company`s share stocks that we are holding , if we do not have this market we wont be able to covert our share holdings to money , money to shares . we can buy and sell equity shares or future contracts or options through stock market .
Stock Market is needed for a company to raise capital through IPO (Initial Public Offer) and since it is not possible to return a share to the company for refund, stock market is also needed to facilitate the trading (buying and selling) of shares.
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