The stack pointer in a microprocessor is a register that holds the address of the top of the stack. This is crucial for the management of the stack, which is a particular region of memory utilized for temporary storage of information such as return addresses, function parameters, and local variables during subroutine calls and interrupts.
The stack operates on a Last In, First Out (LIFO) principle, meaning the last item pushed onto the stack is the first to be popped off. The stack pointer increments when data is removed from the stack and decrements when data is added to it. This dynamic allows efficient management of nested function calls and local data handling in program execution.