Mar 1, 2021
Like every other Market, The stock market is a market made up of different buyers and different sellers, characterized by noise. However, unlike the regular grocery store, all market activity must be performed through a licensed broker, making trades on your behalf.
The stock market refers to public markets for issuing, purchasing, and selling stocks that trade on a stock exchange or over-the-counter. Stocks, otherwise called equities, represent fractional ownership in a company, and a stock market is a place where investors can buy and sell ownership of such investible assets. An efficiently functioning stock market is considered critical to economic development, as it enables organizations to get to capital from the public rapidly. Such financial activities are conducted through institutionalized formal exchanges or over-the-counter (OTC) marketplaces that operate under a characterized set of regulations. There can be different stock trading venues in a country or a district that permit exchanges in stocks and other securities firms.
Stocks can be categorized by the country where the company is domiciled. For example, Pfizer and American Express are domiciled in the U.S. and traded on the New York Stock Exchange (NYSE), so they may be considered part of the New York stock market. However, the stocks may also be traded on exchanges in other countries, such as American depository receipts (ADRs) on U.S. stock markets.
These exchanges have various market opening and closing hours; The NASDAQ and the New York Stock Exchange are open from 9:30 a.m. to 4 p.m. Eastern. The regulation of the stock market is made by the securities and exchanges commission (SEC).
The Market works like an auction, and traders who hope that an organization will do well and offer the cost up, while the individuals who trust it will do ineffectively offer it down. Buyers need to get the most reduced-Value they can, so they can sell for a benefit later, while sellers are typically searching for the best price.
When a company goes public, it gives out part of its ownership(shares) for capital, then the broker makes such companies available to the secondary market. Publicly traded companies are referred to as stock, and the fractions of these stocks are called shares. The stockbroker makes it possible to buy shares of a company without travelling to where the company is domiciled.
Remember – “Behind every stock is a Business.”
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