what does the stock market do 
the stock market fills several different roles worth highlighting corporate governance publicly traded companies follow stringent reporting regulations which makes them far more transparent and accountable this information allows investors to make informed decisions and helps maintain investor confidence in the market it s also a boon for everyday americans to gain a view inside major u s corporations since without these transparency requirements they could close down much of what we know about them economic indicator the stock market s performance is often considered a gauge of an economy s health rising stock prices are associated with corporate profitability and economic growth while declining prices signal problems ahead investment opportunities the stock market offers the chance to invest in companies and potentially grow a portfolio over time the stock market has historically delivered returns outpacing inflation making it a vital tool for retirement planning wealth building and financial security 6liquidity the stock market enables investors to buy and sell shares of companies and other securities quickly when needed raising capital most importantly the stock market offers a platform where companies raise funds by issuing stocks this capital is essential for business expansion research and development and other corporate initiatives by selling shares to the public companies gain access to these funds without incurring debt resource allocation by reflecting the collective judgment of traders and investors through the price of different companies the stock market is said to help efficiently distribute capital to companies more likely to succeed and away from those that are not 