Stock Market
A Stock Market is a financial market of equity stocks.
- AKA: Equity Market.
- Context:
- It can (typically) involve Stock Market Participants.
- It can (typically) be a Competitive Market.
- It can (typically) be a Formal Market(?).
- It can be modeled as a Zero-Sum Game.
- It can involve stock issues and stock trades within a Stock Exchange or Over-the-Counter Market.
- It can range from being a Primary Stock Market to being a Secondary Stock Market.
- It can be characterized by a Stock Market Index.
- It can (often) facilitate Stock Market Investing.
- Example(s):
- a U.S. Stock Market.
- an Asian Stock Market.
- a European Stock Market, ...
- …
- Counter-Example(s):
- See: Stock, Share (Finance), Security (Finance).
References
2015
- (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/Stock_market Retrieved:2015-11-8.
- A stock market or equity market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares); these may include securities listed on a stock exchange as well as those only traded privately.
- (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/Stock_market#Size_of_the_market Retrieved:2015-11-8.
- Stocks can be categorized in various ways. One common way is by the country where the company is domiciled. For example, Nestlé and Novartis are domiciled in Switzerland, so they may be considered as part of the Swiss stock market, although their stock may also be traded at exchanges in other countries.
At the close of 2012, the size of the world stock market (total market capitalisation) was about US$55 trillion. By country, the largest market was the United States (about 34%), followed by Japan (about 6%) and the United Kingdom (about 6%). [1] This went up more in 2013.
- Stocks can be categorized in various ways. One common way is by the country where the company is domiciled. For example, Nestlé and Novartis are domiciled in Switzerland, so they may be considered as part of the Swiss stock market, although their stock may also be traded at exchanges in other countries.
2013
- http://www.investopedia.com/terms/s/stockmarket.asp
- The market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets. Also known as the equity market, the stock market is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company. The stock market makes it possible to grow small initial sums of money into large ones, and to become wealthy without taking the risk of starting a business or making the sacrifices that often accompany a high-paying career.
The stock market lets investors participate in the financial achievements of the companies whose shares they hold. When companies are profitable, stock market investors make money through the dividends the companies pay out and by selling appreciated stocks at a profit called a capital gain. The downside is that investors can lose money if the companies whose stocks they hold lose money, the stocks' prices goes down and the investor sells the stocks at a loss.
The stock market can be split into two main sections: the primary market and the secondary market. The primary market is where new issues are first sold through initial public offerings. Institutional investors typically purchase most of these shares from investment banks. All subsequent trading goes on in the secondary market where participants include both institutional and individual investors.
Stocks are traded through exchanges. The two biggest stock exchanges in the United States are the New York Stock Exchange, founded in 1792, and the Nasdaq, founded in 1971. Today, most stock market trades are executed electronically, and even the stocks themselves are almost always held in electronic form, not as physical certificates.
If you want to know how the stock market is performing, you can consult an index of stocks for the whole market or for a segment of the market. Examples include the Dow Jones Industrial Average, Nasdaq index, Russell 2000, Standard and Poor’s 500, and Morgan Stanley Europe, Australasia and Far East index.
- The market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets. Also known as the equity market, the stock market is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company. The stock market makes it possible to grow small initial sums of money into large ones, and to become wealthy without taking the risk of starting a business or making the sacrifices that often accompany a high-paying career.