What is the stock market? A must-read guide for Newbies.

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## That&#39;s how the stock market is.In simple terms, the stock market is a place where you can buy and sell shares of publicly listed companies. It includes various exchanges, brokers, and electronic platforms, all operating according to rules. The stock market has two core functions: one is to help companies raise funds (by selling shares), and the other is to give ordinary people the opportunity to become shareholders of these companies.## How the Stock Market WorksWant to buy and sell stocks? You must operate through a broker, who provides a safe and regulated trading environment. The stock market is divided into two stages:**Primary Market**: Companies issue stocks for the first time (IPO), such as Rivian (RIVN) and Coupang (CPNG) in 2021. IPOs allow companies to reach new investors and raise funds quickly.**Secondary Market**: After the IPO, stocks are freely bought and sold on the exchange. You trade here with other investors, and the exchange earns a fee from these transactions. In simple terms, the primary market is where the company sells stocks directly to you, while the secondary market is where investors trade stocks among themselves.## How to Start InvestingThinking of investing 10,000 yuan? First, ask yourself these questions:1. What type of investor are you (aggressive or conservative)?2. Which brokerage platform is more suitable?3. How much money to invest?4. Do you want to buy stocks, funds, ETFs, or bonds?5. Do you plan to hold for the short term or long term?6. How to manage your investment portfolio?The key point is: you must do your own research and not blindly follow the crowd.## What is the stock market doing now?When people ask "How did the stock market perform today?", they usually look at these three indices:**S&P 500 Index**: The largest 500 publicly traded companies in the United States, serving as the best benchmark for measuring the overall performance of the US stock market.**Dow Jones Industrial Average (Dow 30)**: 30 blue-chip companies, established in 1896, serves as a barometer of the economy&#39;s health. One of the most closely watched stock market indices globally.**Nasdaq Composite Index**: Over 3,700 listed companies, with technology and growth stocks concentrated. The largest weights this year (at the time of data collection) are held by giants such as Apple (12.31%), Microsoft (10.51%), Amazon (6.46%), and Tesla (3.75%).## Summary: Why Invest in the Stock MarketThe long-term return rate of stocks beats bonds and real estate. You can buy and sell quickly, diversify risks, and truly become a shareholder of the company. Of course, there are risks, but through learning, research, and diversified allocation, it can be minimized to the lowest.If you want to make money through investment, the stock market is worth a try. Remember: educate yourself first, then take action.