Question ~ What Is the Stock Market?
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Answer: What is the stock market? The stock market is a term for the group of organizations around the world called stock exchanges. Each stock exchange brings together people who want to buy and sell shares of stock in public companies. Each stock exchange provides a list of company stocks and the best current price to buy or sell share of stock. Sometimes stock exchanges are also called stock markets. So you see, the stock market is not a place or one organization. The purpose of each stock exchange is to matched up buyers with sellers and make the transaction. Stock exchanges publish real time price lists of the stocks and other financial instruments for sale. Often a stock exchange is actually an electronic network for trading stocks. Individual retail investors place their orders to buy and sell stock through a brokerage firm which is a member of the stock exchanges.
The largest stock exchange in the United States is the New York Stock Exchange, abbreviated NYSE. In Canada, the largest stock exchange is the Toronto Stock Exchange, abbreviated TSE. In Europe important stock exchanges are the London Stock Exchange, the Paris Bourse, and the Deutsche Börse. In Asia are the Tokyo Stock Exchange, the Hong Kong Stock Exchange, the Shanghai Stock Exchange, and the Bombay Stock Exchange. Latin America has stock exchanges like the BM&F Bovespa and the BMV.
There are also Over the Counter Markets for stock in companies that do not meet the listing requirements of the stock exchanges. The major OTC markets in the United States are the electronic quotation systems OTC Bulletin Board (OTCBB) and the Pink OTC Markets (Pink Sheets). So you see, the stock market is not a place, but stock trading activities all over the world.
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