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Stock Market
A stock market, to say the very least, is a place for buying and selling stocks. It
also acts as an indicator of the economic cycle. When the economy is doing well,
the prices of stocks tend to increase in the market, generally. However, when the
economy is down, you can also expect the prices of stocks to decline, this can be
true even for a very good stock. It is also worth noting that the prices of stocks
primarily depend on the performance of the business. When a business is doing
well, the price of its stocks will also tend to increase; the opposite would happen
if the business is not earning well. Of course, there are odd cases where
speculators buying into a stock that is not doing well at all, which will result in a
high stock price even for a crappy company, but that is another story for another
time. Now, the question remains: Why do businesses offer stocks? The reason is
that it helps businesses to raise funds in order to finance their projects, whether
for the expansion of the business, or for their day-to-day activities, or just for the
sake of it to keep their stakeholders happy. Money, after all, is the lifeblood of
every business.

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Stock
A stock, also referred to as a 
share
, signifies ownership of a company. When
you buy stocks from a company, you get to exercise rights of ownership of the
company, such as a claim on the company’s earnings and assets, as well as
voting rights. Take note that there are many kinds of stocks. But, when you hear
investors talk about the stock market, they usually refer to common stocks.
Stock Market Index
When people talk about stocks, you may hear them talk about how the market
rises or falls in a day. However, when you take a look at the stock market, you
may see that not all of the stocks rise or fall on that day. The way to understand
this is to know the stock market index, or indices (plural).
There are many stocks listed on the stock exchange. Similar stocks are grouped
together and formed an index. The way these stocks are grouped together may be
based on capitalization, industry, company size, and other factors. Since they are
grouped together, any change in the value of the stocks that belong to a