NBT is back and ready to launch a beginner post dedicated to the understanding and fundamentals of the Stock Market.
This Blog will be short, in the interest of not overloading the readers!
What is the Stock Market?
A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks, which represent ownership claims on businesses;
these may include securities listed on a public stock exchange, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity crowdfunding platforms.
Here is another definition, to solidify what your learning!
Stock markets are where individual and institutional investors come together to buy and sell shares in a public venue. Nowadays these exchanges exist as electronic marketplaces.
What are Stocks?
A stock or share is a financial instrument that represents ownership in a company or corporation it represents a proportionate claim on its assets ( What it own) and earnings ( What it accumulates in profits).
If RC owns stock, then he is a shareholder, which means he owns a slice of the company equal to the number of shares held as a proportion of the company’s total outstanding shares.
For instance, if RC owns 100,000 shares of a company with one million outstanding shares he would have a 10% ownership stake in it;
However, Most companies have outstanding shares that lean into the millions or billions.
Top 3 Resources For Learning
In many blogs, there are so many types of opinions on this vast market, and that can be quite confusing.
Knowing where to start is important, and to help save you time, the following are great resources to learn from.
- Investopedia ( Best Site for rock-solid information and Courses for all types of investors)
- BabyPips.com ( School of Piptology, great for testing the waters in Forex.)
- NerdWallet ( Similar to Investopedia, but another site to balance your info from other resources.)
Quick Stock Exchange FAQs
What Are the 3 Major Exchanges in the U.S.?
The NYSE is the largest SE in the U.S. and the world by market capitalization.
The NASDAQ is the second-largest SE in the U.S. while the American Stock Exchange, which is now NYSE Amex Equities, is the third-largest in the U.S.
Simple Definition of Stock Exchange?
: A stock exchange is a market that brings together Buyers and Sellers to facilitate investments in stocks.
What is the Purpose of a Stock Exchange?
A Stock Exchange brings companies and investors like you and me together. A ” SE” helps companies raise capital by issuing equity shares to be sold to investors.
Companies invest those funds back into their business, and investors, ideally earn a profit from their investment in these companies.
Stock Exchange and Stock Market Difference?
A stock exchange is a marketplace that facilitates equity trading;
on the other hand, a stock market is an umbrella term representing all of the stocks that trade in a particular region or country.
A stock market is often represented as an index or grouping of various stocks such as the S&P 500.
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