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Investing For Beginners: What is the Stock Market?

stocks Sep 10, 2019

Investing For Beginners: What is the Stock Market?

What is the Stock Market?

Stock Market Definition

The "Stock Market" usually refers to one of the major market indexes such as the Nasdaq, S&P500, or the Dow Jones Industrial Average. These indexes are used as standard benchmarks for the performance of the underlying stocks that make up the indexes. As an example, we've listed the SPDR S&P500 ETF TRUST below.

SPDR S&P500 ETF TRUST

 

Market Functions

The Stock Market serves one of the most important functions in our modern society. Financial markets facilitate growth by allowing a place where free trade can occur. Institutions and people all over the world use financial markets to connect, invest, hedge, and speculate.

How does the Stock Market work?

The Stock Market works on a global network of exchanges. These exchanges allow companies to list their shares to be traded.

This is called an IPO(Initial Public...

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