Description

A stock market is a place for companies and governments to get long-term funding, and a secondary market is a place where these securities can be traded.

Industrialization and economic growth have made businesses bigger and more diverse around the world. Corporations grew as a convenient way to run a business because large amounts of capital were needed and risk had to be shared. These companies made their own securities and got money directly from people who saved. So, investors who wanted higher returns and were willing to take on more risk turned to corporate securities.