Cryptheory: Crypto and Internet

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What is the Stock Market?

1 min read

Definition

At the stock market, stocks of listed companies are dealt. The term stock market is used for the overall stocks sold and bought at stock exchanges. A group of organizations can constitute a stock exchange to perform share dealings. For example, USA NASDAQ and NYSE are stock exchanges.

Functionality

In the stock exchange everyone can participate with respective stocks. It doesn’t matter where it is based or how much stock the trader possesses. In the stock market, small investors to big traders everybody trade together. The price of a stock depends on the demand and supply of that particular stock. In stock markets, the share dealing is done by a middleman. The person is known as a share broker. The seller and buyer mutually decide the price of the trade. There is an open place in the stock market for trading and the process is known as open outcry. Here traders gather and wildly shout their individual quote to sell their stock. In this kind of auction (the ‘verbal bid’) the bidding price changes simultaneously and stops only when a bid is singled out as the highest. The other type of trading is virtual and performed on the computer. In this type of exchange, traders sitting on computer terminals bid through computers within a network.

Paul Cris

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

3 thoughts on “What is the Stock Market?

  1. I’ve been surfing online more than three hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my opinion, if all web owners and bloggers made good content as you did, the web will be a lot more useful than ever before.

  2. Hey! I know this is kinda off topic but I was wondering which blog platform are you using for this site? I’m getting tired of WordPress because I’ve had issues with hackers and I’m looking at options for another platform. I would be awesome if you could point me in the direction of a good platform.

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