Wednesday, October 30, 2013

What is Stock Market?

What is Stock Market? When used in general conversation, the term “stock market” often conveys a loose sense of a single market on which companies trade their securities. In reality the “stock market” is an overarching term that typically refers to the numerous stock exchanges operating domestically. The most common of these are the New York Stock Exchange (NYSE), NASDAQ, and American Stock Exchange (AMEX). There are also numerous international stock exchanges around the globe including the London Stock Exchange, Kuala Lumpur Stock Exchange, Bombay Stock Exchange, and Toronto Stock Exchange to name a few. Nevertheless the common use of the phrase “stock market” will typically exclude the financial actions taking place on these exchanges because Americans simply don’t have access to them.

What is Stock Market - the meaning? Yet even amongst domestic stock exchanges, there are divisions that distinguish between each trading place from the other. Each stock exchange typically maintains its own set of listing requirements and there are levels of prestige that surround the well-known exchanges. It is considered a privilege for instance to be trading onto the NYSE, and invited companies must typically reflect a similar level of prestige in regards to the size of their operation. The NASDAQ and AMEX are typically stepping stones for public companies aiming for the NYSE and often serve to be respectable trading grounds in themselves. Some stock exchanges like the Chicago Stock Exchange, Philadelphia Stock Exchange, and Arizona Stock Exchange are rarely even mentioned in passing.

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