Stock markets are financial marketplaces where equity securities are traded. Securities exchanges offer trading securities of public companies, private enterprises and other organizations while investment banks encourage the issuance of securities through public offerings, floatation and private placements. Most stock markets operate via computerised stock exchanges that provide a centralized venue to trade stocks within a specific country or region. The main advantage of the financial markets is the opportunity to invest and manage your own funds rather than leaving your money in cash or money market instruments that are essentially short-term investments. Without exposure to securities, investors usually have very little chance of maximizing their returns for any given amount of risk.
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