What Does Stock Market Mean?

The term for the overall market in which shares are issued and traded on exchanges or in over-the-counter markets. Also known as the equity market, it is one of the most vital areas of a market economy because it provides companies with access to capital and allows investors to own companies and participate in economic growth.

The stock market is made up of the primary and secondary markets. The primary market is where new issues (IPOs) first are offered, with any subsequent trading going on in the secondary market.