what is stock market?

Question

please. don't make it complicated.(thanks).

Answer 1

a stock market is a place where people buy and sell stock/securities. There are varous kinds of markets , for eg. the capital market which is the market for trading long-term investments. and the Money market which markets short-term securities, eg a 5 year bond

there is also the primary market and the secondary market

the former is the market for newly issued stocks whilst the secondary market is a place where the investor who is already holdings securities, decides to sell them.. thus secondary securities.

Answer 2

A stock market is basically a place where a buyer and seller of financial instruments do business. This could be an actual place (New York Stock Exchange) or a network of computers (Nasdaq, OTC).

To get a better grasp of this concept, imagine your local flee market. Here, just like at stock exchange, people come to buy or sell something. Most often then not, the goods sold at the flea market are used, the same as the shares at the stock market (secondary market). The owners probably bought these goods in a store before putting them out at the flea market. The "store" is called the "primary market" when dealing with stocks. The primary market is where a company goes when it FIRST wants to issue stock through an Initial Public Offering (IPO).

So let's say you want to buy something at that flea market. You go in, and find the product you are looking for, let's say a toaster.
The person selling a toaster wants $50 dollars for it. This is called the ASK price. It is the price that the seller is willing to sell for. You look at the toaster and see that it is displaying signs of wear and it is scratched...and you are only willing to pay $30 for it. This is your BID price. The price that you are willing to buy for.

After haggling with the seller, you both are happy with $40. He/she sells you the toaster for $40. This is the closing price, or the trade price, when it comes to stocks.

Now, NASDAQ does not have a physical place of trading. It is simply a network of computers. Here, imagine you are shopping online. Thus, you can do your business from NY or CA or anywhere else in the world.

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Answer 3

Stock Market is a place where the buyer and seller doing business.There are two types of market like primary market and secondary market. Primary market is a place where the IPO is made. Secondary market is a market in which buying selling of shares is made.