Definition of Stock market
Stock market also known as share market is one point, platform or hub where buyers and sellers of shares deal. It is a place where aggregated buyers and sellers do their share business transactions.
Stock market facilitates brokers to trade company shares and other securities.
- Stock market list common shares as well as bonds like corporate and convertible ones.
- Almost all big companies have their shares listed in stock exchange.
- Listing in stock exchange makes stocks more marketable and liquid. This attracts more investors.
- Individuals as well as companies, banks, financial institutions and insurance companies participate in stock market functions.
- Stock market runs on real time.
Brief Explanation of Stock market
The market can be divided into two main sections:
Primary Market and Secondary Market
Primary Market: This is one where new shares are sold.
Secondary Market: Once the stock has been sold in the primary market it is then traded in secondary market between buyers and sellers at prevailing price.
- Most of the countries have their own stock exchange market.
- Stock exchange is said to be crashed when the market or business is very low.
- These days’ stocks are dealt in electronic form.
- The biggest Stock exchange in USA and the world is New York Stock Exchange (NYSE).
- It is the most powerful stock exchange in the world.
- The number of stocks each exchange handles in a day is called it’s volume.
- Stock brokers, investment banks, traders, portfolio managers and analysts are the main players of the stock market.
- Two types of securities that are floated in the stock market are listed securities and over the counter shares.