A stock market allows companies to raise capital by selling shares of ownership (stocks) to investors. Stocks are traded on stock exchanges between buyers and sellers. Key components of a stock market include stock exchanges that list company share prices, companies that are publicly listed, shares that represent ownership proportions, and brokers that facilitate trades between buyers and sellers. A company's stock price fluctuates based on supply and demand, as well as external economic factors like recessions, inflation, and job cuts.

1. By Vihaan Kohli

3. A stock market is a market where company stock is
traded between people who want to buy the stock and
people who want to sell stock. Just the same as a fish
market where people want to buy and sell fish or a cattle
market where cows are exchanged between buyers and
sellers. Stock is just a slice of a company/organisation, if
you own over 50% of the stock then you own a company.
A stock market is made up of several components of
which we will be seeing the major components in the
next few slides…

5. Stock exchanges are key companies that allow the stock market
to work as efficiently as it does. They list shares prices for
thousands of companies, they list the bid/ask prices of shares and
enable quick electronic transfers of shares between people. Some
stock exchanges you might have heard of include LSE (London
stock exchange) and the NYSE (New York stock exchange).
Companies are vital for a stock market to work! A company must
be listed as a PLC (public listed company) for people to trade it’s
shares at a stock market. To be listed as a PLC a company must
meet strict financial requirements.

7. A unit of ownership that represents an equal proportion of
a company's capital. It entitles its holder (the shareholder)
to an equal claim on the company's profits and an
equal obligation for the company's debts and losses.

8. Shares are issued by a company to raise money (capital) to
help plan for future projects or because the owner/s of the
company want a big lump sum of money for themselves as
a reward for the hard work they have put into building up
the company!

10. Brokers are the middle men between the stock exchange
and the stock buyer. They fetch the buy and sell prices of
stocks from the stock exchange and relay them to the
purchasers. It is a legal requirement that you open
a brokerage account to buy or sell stocks.

12. •A company is making huge profits.
•Lots of people want to buy the shares to reap the
rewards of the profits.
•Not many people want to sell the shares.
•There are not many shares left.

13. •A company makes some losses.
•Lots of people want to sell the shares.
•Not many people want to buy the shares.
•There are too many shares.

14. However there are several external factors that affect a
company’s stock price. One factor that we have all witnessed
recently is the recession. Others include inflation rates,
interest rates, job cuts, natural disasters, company mergers,
changes in company