A stock market can be either a public space or a private market where shares of company stock or the derivatives of company stock are traded. The stocks traded are indexed by corporations that can expedite the bringing together of sellers and buyers. Some major U.S. indexes include: the New York Stock Exchange, NASDAQ and the S&P 500.
Company stocks are shares of ownership in that company. One way for a company to obtain the funds to operate its business is to sell shares in its ownership. When a company offers shares in its ownership for sale, it is called a public offering. People who buy these shares are called stockholders. It is traditional for publicly owned companies to have annual meetings where stockholders are invited to come and learn more about the company that they partially own.
One of the benefits of owning stock in a company is if the company pays dividends. These are a share of the profits that the company has made. Not all stocks pay dividends. Another benefit to owning stock in a company is if the stock increases in value. If this happens, the owner of the stock makes money by selling the stock. Stocks increase in value based on what the public impression of the stock is. Stocks are worth whatever someone will pay for them.http://www.businessinsider.com/henry-blodget-stock-market-crash-will-continue-says-gary-shilling-40-50-chance-we-hit-a-new-low-2010-2
The New York Stock Exchange
- 1817: New York City brokers establish the New York Stock & Exchange BoardNYSE: NYSE Timeline
- CEO: Duncan Niederauer
- The NYSE is operated by NYSE Euronext
- Nearly 4,000 companies listedNYSE: NYSE Timeline
NASDAQ
- Established: 1971Business Reference Services: History of the NASDAQ
- CEO: Robert Greifeld
- Operated by NASDAQ OMX Group
- 3,900 companies listedNASDAQ OMX: NASDAQ Facts
S&P 500
- Established in 1957
- Operated by The McGraw-Hill Companies, Inc.
- 500 companies listedS&P 500: S&P 500 Overview
Stock Markets
- Nasdaq: Official Website