A market is any arrangement between buyers and sellers to career out business transactions such arrangements can come in the form of a platform either online or offline or a physical market like the one we are used to.
There are few examples of a market but a market is identified by what is being traded like the commodity market trades commodities and the resource market trades resources used to produce goods.
A stock market is a set of exchanges where shares are issued meaning we buy and sell shares in the stock market Because shares represent a unit of ownership. Examples of a stock exchange market are the New York Stock Exchange (NYSE), the NASDAQ, the Tokyo Stock Exchange (JPX). Other well-known stock exchanges include the London Stock Exchange (LSE), the Shanghai Stock Exchange (SSE).
Let's say you own 50% of Apple stock that means you own 50% of Apple which means if apple total share is 20 shares you automatically own 10 shares since you own 50% of Apple stock.
Companies usually sells share to raise money or for expansion some exchange market usually sets a valuation before a company is listed in the exchange. Anyone who buys shares becomes a shareholder and may also be entitled to dividends if the company profits.
Let's look at a more practical example imagine you have $500 and want to start an ice cream stand which will require a $1000 now you have to raise an extra $500 to continue with your plan and you have few options to lend from the bank, family, friends or investors. Now you decided to look for investors and break down the $500 into 5 shares with each worth 100 dollars.
Now let's imagine I bought 2 shares worth $200 that means and James, Peter and John bought 1 share each worth $100 each. Your company ownership will look like this
You = 50% Worth $500
Me = 20% Worth $200
James = 10%. Worth $100
Peter = 10%. Worth $100
John = 10%. Worth $100
Let's imagine your ice cream stand flourishes and you now operate 5 more stands and your company valuation is now $5000 your ownership structure will simply look like this
You = 50% Worth $2500
Me = 20% Worth $1000
James = 10%. Worth $500
Peter = 10%. Worth $500
John = 10%. Worth $500
People buy shares because they believe companies will do well and valuation will increase and they get more money Incase they want to sell