The Stock Market and the Role It Plays A review

Abstract

The term stock market refers to the collection of marketplaces and exchanges that facilitate the buying, selling, and issuing of shares of publicly-held corporations on a consistent basis. These types of financial transactions are executed by means of established official exchanges or over-the-counter (OTC) markets, both of which are governed by a predetermined set of norms and are used interchangeably. It is possible for a nation or a region to have more than one stock trading venue, each of which enables transactions in stocks and other types of securities. “The phrases stock market and stock exchange are sometimes used interchangeably; however, the latter term more specifically refers to a subset of the former term. When someone claims that they trade in the stock market, what they really mean is that they purchase and sell shares of companies that are listed on one (or more) of the stock exchanges that are included in the stock market as a whole. The New York Stock Exchange (NYSE), the Nasdaq Stock Market, the Better Alternative Trading System (BATS), and the Chicago Board Options Exchange are among the most important stock exchanges in the United States (CBOE). The United States stock market is composed of a number of different exchanges around the country, including some of the most important national exchanges and others. Even though it is known primarily for trading stocks and equities and is called a stock market or equity market, other financial securities such as exchange traded funds (ETF), corporate bonds, and derivatives based on stocks, commodities, and currencies are also traded in the stock markets. Although it is called a stock market or equity market, these markets also go by other names.