Stock market
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Definition
The stock market is a generic term meant to describe buying and selling equities. There are both public and private Stock Markets world wide, which should not be confused with stock exchanges. People who participate in the stock market do so by purchasing the listed securities of public traded companies. They do so on the public stock markets, as well as Over The Counter.
The securities you can buy on the stock market include common stock, preferred stock, options, rights and warrants, convertibles, and bonds. People also refer to the stock market in a generic sense to describe stock movement, as in "The market was really up today."[1]
History of the stock market
Stock markets have existed since the 11th century. In the United States, stock exchanges came into fashion at the end of the Eighteenth century. With the rise of the New York Stock Exchange, much of the bulk of international stock trading moved to Wall Street. Today, the "stock market" is much more decentralized, with hundreds of thousands of computers making up much of the market.[1A]
Stock markets are subject to both good and bad times, with market booms and busts recurring repeatedly. Some of the most dramatic crashes on Wall Street have literally captured the attention of the world.
Bibliography
- 1. Dictionary of Finance Terms, Barron's Financial Guide, 2003
