The stock market is a place where people buy and sell shares of companies. It is like a huge supermarket, but instead of buying vegetables or clothes, you buy small pieces of a company. These small pieces are called “stocks” or “shares.” When people search “what is stock market in simple words,” this is the easiest way to explain it: the stock market is where investors trade ownership in companies.

For example, if a company called XYZ Ltd. wants to grow its business, it needs money. So it sells shares to the public. When you buy a share of XYZ Ltd., you become a part-owner of that company. This means if the company does well, you can earn money too. If the company pays dividends, you get a share of its profits. And if the price of the share goes up, you can sell it at a higher price and make a profit.