How can one explain very simply about stock markets and types of stock exchange ?

Answer 1

There are several stock exchanges throughout the world. The two largest in the U.S. are the American Stock Exchange and they New York Stock Exchange. A stock exchange is like a clearing house where stocks may be sold or purchased. The amount one pays for a stock depends more on the number of shares traded at a particular time and actual value. Not all stocks are sold on an exchange. Only those listed with an exchange may be traded. An exchange will only deal with publicly traded companies. Some stocks are bought and sold privately or through an IPO or initial public offering. The larger companies will be listed and marketed through an exchange.