human
Can you explain how the stock market works?
assistant
The stock market is a place where investors can buy and sell shares of publicly traded companies. When an investor buys a share of a company's stock, they become a part-owner of that company. The prices of a stock fluctuate due to demand and supply. The stock market is made up of exchanges - such as the NASDAQ or the New York Stock Exchange - where stock transactions take place. When a company issues new stocks, it is said to be going public and the investors can purchase them through the exchange. As more people invest in the stock, the stock price will generally increase. When the opposite is true and there are more people selling than buying, the price decreases. Investors make money when they are able to buy stocks low and sell them high.