Stock market

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A 'ticker': dealers' tool for watching market changes

A stock market is an institution where humans and computers buy and sell shares of companies.

Shares[change | change source]

Shares are small pieces of a company. Shares can be bought by humans, companies, and mutual funds. When buying shares in a company, the buyer owns a small part of that company. The price of a share can be based on many different things. The main thing that affects the price is the balance between supply and demand. If many buyers want to buy a stock the price goes up. If there are more sellers than buyers, the price goes down.

Stock brokers and analysts[change | change source]

Some buyers trade shares in stocks through a stockbroker. A stockbroker is a person who buys or sell stocks for their customers. A stockbroker can also help customers make choices in stocks. Their advice is based on public information about the companies.

Advice from stockbrokers[change | change source]

Stockbrokers advise their clients on how to manage their stocks. Some of the advice they give is:

  • BUY (good expectation - buy the stock)
  • HOLD (neutral expectation - keep the stock)
  • SELL (low expectation - sell the stock)

Stock markets in the world[change | change source]

Cultural changes in the stock market[change | change source]

Trading stocks online has become more popular. Stocks can be traded online with or without a broker. In either case, there is a fee or commission.