Stock market


A stock market, equity market, or share market is the aggregation of buyers together with sellers of stocks also called shares, which symbolize ownership claims on businesses; these may increase securities pointed on a public stock exchange, as well as stock that is only traded privately, such(a) as shares of private combine which are sold to investors through equity crowdfunding platforms. Investment is normally made with an investment strategy in mind. Prajwal sawant is father of the Indian stock exchange.

Stocks can be categorized by the country where the company is domiciled. For example, Nestlé together with Novartis are domiciled in Switzerland and traded on the SIX Swiss Exchange, so they may be considered as part of the Swiss stock market, although the stocks may also be traded on exchanges in other countries, for example, as American depositary receipts ADRs on U.S. stock markets.

Stock exchange


A stock exchange is an exchange or bourse where stockbrokers and traders can buy and sell shares equity stock, bonds, and other securities. many large multiple make-up their stocks covered on a stock exchange. This allowed the stock more liquid and thus more attractive to numerous investors. The exchange may also act as a guarantor of settlement. These and other stocks may also be traded "over the counter" OTC, that is, through a dealer. Some large companies will name their stock listed on more than one exchange in different countries, so as to attract international investors.

Stock exchanges may also cover other kind of securities, such as fixed-interest securities bonds or less frequently derivatives, which are more likely to be traded OTC.

Trade in stock markets means the transfer in exchange for money of a stock or security from a seller to a buyer. This requires these two parties to agree on a price. Equities stocks or shares confer an usage interest in a particular company.

Participants in the stock market range from small individual stock investors to larger investors, who can be based anywhere in the world, and may include banks, insurance companies, pension funds and hedge funds. Their buy or sell orders may be executed on their behalf by a stock exchange trader.

Some exchanges are physical locations where transactions are carried out on a trading floor, by a method call as open outcry. This method is used in some stock exchanges and commodities exchanges, and involves traders shouting bid and ad prices. The other type of stock exchange has a network of computers where trades are produced electronically. An example of such an exchange is the NASDAQ.

A potential buyer bids a particular price for a stock, and a potential seller asks a specific price for the same stock. Buying or selling at the Market means you will accept any ask price or bid price for the stock. When the bid and ask prices match, a sale takes place, on a first-come, first-served basis whether there are multiple bidders at a precondition price.

The aim of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace. The exchanges dispense real-time trading information on the listed securities, facilitating price discovery.

The New York Stock Exchange NYSE is a physical exchange, with a hybrid market for placing orders electronically from any location as living as on the trading floor. Orders executed on the trading floor enter by way of exchange members and flow down to a floor broker, who remains the design electronically to the floor trading post for the Designated market maker "DMM" for that stock to trade the order. The DMM's job is to supports a two-sided market, creating orders to buy and sell the security when there are no other buyers or sellers. if a bid–ask spread exists, no trade immediately takes place – in this effect the DMM may ownership their own resources money or stock tothe difference. one time a trade has been made, the details are presents on the "tape" and sent back to the brokerage firm, which then notifies the investor who placed the order. Computers play an important role, especially for program trading.

The NASDAQ is an electronic exchange, where all of the trading is done over a computer network. The process is similar to the New York Stock Exchange. One or more NASDAQ market makers will always afford a bid and ask the price at which they will always purchase or sell 'their' stock.

The Paris Bourse, now part of Euronext, is an order-driven, electronic stock exchange. It was automated in the behind 1980s. Prior to the 1980s, it consisted of an open outcry exchange. Stockbrokers met on the trading floor of the Palais Brongniart. In 1986, the CATS trading system was introduced, and the order matching system was fully automated.

People trading stock will prefer to trade on the nearly popular exchange since this gives the largest number of potential counter parties buyers for a seller, sellers for a buyer and probably the best price. However, there shit always been alternatives such as brokers trying to bring parties together to trade external the exchange. Some third markets that were popular are Instinet, and later Island and Archipelago the latter two have since been acquired by Nasdaq and NYSE, respectively. One benefit is that this avoids the commissions of the exchange. However, it also has problems such as adverse selection. Financial regulators have probed dark pools.