What is stock market?

The stock market a combination of markets and exchanges where selling and buying and selling publicly-traded companies’ shares takes place. These stock trading activities are conducted through official exchanges or over the counter (OTC).

How does the stock market work?

The stock market is the best place to buy and sell publically traded securities. It is a secure and regulated environment. Companies raise money fast when they become public. They do this through what is called Initial Public Offerings (IPO). This means that a private company will decide to go public by offering its shares to the public. Shareholders can decide to keep their shares for a long time or sell them whenever they want.

The function of the stock market

The stock market is there to protect the interest of everyone who is involved in buying and selling stocks. The following are some of its functions.

  • Establishing prices of securities: Evaluation of companies is not the same due to their differences in sectors and profitabilities. For this reason, growth companies get higher ranking due to their high demand.
  • Creating a safe environment for transactions: Buying and selling stocks and other securities online can be challenging. Without advanced safety measures and fairness in the market, many people would lose their money. Stock markets create a safe environment for traders and investors.
  • Providing accurate economic data: The stock market is the best place for accurate economic data. Numerous investors and countries use market data to evaluate their economic performances.
  • Liquidity maintenance: The stock market provides a good balance between buyers and sellers. That is, everyone in the market achieves what they want on time and at fair prices. For example, you will get your shares sold when you want to sell them and you will receive the best price.
  • Protection of investors: The stock market protects investors of all kinds especially inexperienced ones. Without enough knowledge to make successful trades, the stock market implements regulations that protect you from major losses.

Leading exchanges in the USA

  • New York Stock Exchange (NYE)
  • Nasdaq
  • Chicago Board Options Exchange(CBOE)

Leading exchanges in Europe

  • Euronext
  • London Stock Exchange
  • Six Swiss Exchange
  • Deutsche Borse

Leading exchanges in Asia

  • Shanghai Stock Exchange in China
  • Tokyo Stock Exchange in Japan
  • Hong Kong Stock Exchange in Hong Kong
  • Bombay Stock Exchange in India
  • Korean Stock Exchange in Korea

Leading exchanges in Africa

  • Johannesburg Stock Exchange (JSE) in South Africa
  • Nigerian Stock Exchange in Nigeria
  • Egyptian Stock Exchange in Egypt

2 thoughts on “What is stock market?”

  1. Hi there! This is kind of off topic but I need some advice from an established blog.

    Is it very difficult to set up your own blog? I’m not very techincal but I can figure things out pretty fast.
    I’m thinking about creating my own but I’m not sure where to begin. Do you have
    any ideas or suggestions? Thanks

    1. Hi G, thanks for stopping by. I appreciate your support. I personally don’t think it is difficult to start a blog. However, it requires a lot of time as you have to learn everything and how they fit together.

      I think you have made your first step toward creating your own blog. That is thinking about creating a blog. Good job! Now you know you want to create a blog, the next question to ask yourself will be: What kind of blog do I want to create? In other words, what is my niche? If you like animals,for example, you can create a blog on animal types, food, diseases, etc. If you love traveling, you can start one for example about local travels, international travels, or a particular country that you live in, etc. You got the idea.

      After knowing what you want to blog about, it will be the time for the second question: What is my domain name going to be? In other words, your domain is your website name. It is recommended to have a domain name that reflects your content. Something simple, easy to remember, and yet powerful. Keep in mind that there is a chance that the domain name you chose might be taken. You can modify it when you are setting up everything with your host.

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      You will then start by choosing your theme. Themes help you build your blog structure without starting from scratch. There are many designs out there. Some of them are free and others cost a fortune. You will choose the ones that fit your needs the most.

      You will then learn how to market your blog, how to work with SEO, how to increase page views, and many more.

      Everything is easy and straight forward. You only need patience and the courage to keep going. It will take a little bit of time to have everything up and running. Once you do, you will never regret the time and effort.

      I recommend watching a lot of Youtube videos on how to navigate every step. There are a lot of people out there who explain how to do every step from start to finish.

      I hope this condensed and generic answer helps you a little bit.

      Good luck blogging !!!

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