The stock market is one of the most significant parts of a free market economy.
It allows companies to raise capital by issuing stock and corporate bonds. Ordinary investors can participate in a company's financial success, profit from capital gains, and earn money in the form of dividends, although losses are also possible. While institutional investors and professional money managers have certain advantages due to their enormous cash reserves, superior skill, and risk-taking abilities, the stock market strives to create a fair playing field for regular individuals.

Individuals' savings and investments are channelled through the stock market into productive investment possibilities. It benefits the country's capital formation and economic success in the long run.

The stock market is crucial for the economy as it facilitates the raising of capital for companies, allowing them to expand, innovate, and create jobs. By enabling the buying and selling of shares, it provides liquidity, ensuring investors can easily enter or exit investments. The stock market also serves as a barometer for the economy, reflecting the financial health and future prospects of industries and companies. For individual investors, it offers opportunities to grow wealth and achieve financial goals through dividends and capital gains. Furthermore, the stock market promotes transparency and accountability, as publicly traded companies must adhere to regulatory standards and disclose financial information, ensuring a level of trust and protection for investors.