What is Stock Market

The Stock Market is either a private or public market where stock shares of the companies are sold
or traded to potential investors
A stock share, a legal document from the company or simply referred as 'stock certificates', will entitle
you to be a co-owner of that company. It is considered as a very important sector in the market economy.
One of the highlighted features in investing in Stock Market is the concept of unlimited liability. The Stock
Market indeed offers a profound opportunity to be a shareholder for certain companies which in return
escalates your investments provided you have opted for a reputable income generating companies. In case
you don’t know some companies allow you to buy part of the company and these pieces of the company
are called shares of stock.

The stock market takes place on various stock exchanges the two larges exchanges are the
New York Stock Exchange (NYSE) and the
National Association of Securities Dealers Automated Quotation System (NASDAQ).

The stock market is nothing new though, in fact in 1602 Dutch East India Company listed the first share
of stock on the Amsterdam Stock Exchange.

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.

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.

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