Stocks are also known as equity, it represents the ownership of an entity along with its profits, voting power, losses, and assets. Equity is a long-term source of financing the business and is non-redeemable by nature. While thinking of stock markets, you will imagine prices going up and down every second. Stock markets are, in some ways, perceived as a money-making place like Casino, and many people also prefer punting in stock markets. In order to grow and expand, businesses require capital. One way of raising this capital requirement is through getting the shares traded on one or various stock markets and allowing the general public to invest. The Stock Market is a medium that connects investors and capital seekers/companies, who are willing to sell a part of their ownership for a sum of money, which is the stock price.
In most of the jurisdictions, the capital markets are regulated by a separate body designated to supervise the activity in capital markets, but there could be more than one regulator in a country with different roles. Regulators not only ensure that investor interests are not compromised, but they also supervise the company’s transactions, including mergers and acquisitions, foreign investment in a business, and anti-money laundering.