The stock market is a place where stocks are traded. It allows investors to buy and sell shares of a company among each other in a physical or organized electronic marketplace.
How Does the Stock Market Work?
When shareholders want to sell their stake in the future, they must find a buyer by going to family, friends, or community members. The stock market makes it easier for them to find a buyer in what is known as the “secondary market.” Through the stock market, you may never know the other person in your transaction; they could be a retired teacher halfway across the world, a multi-billion dollar insurance group, a mutual fund, or a debt fund.
Notable Events
In the United States, on May 17, 1792, a group of 24 brokers gathered under a buttonwood tree outside 68 Wall Street in New York City. They signed an agreement now known as the “Buttonwood Agreement,” which effectively established the New York Stock Exchange.
Stock Exchanges Around the World
– New York Stock Exchange in New York.
– NASDAQ in New York.
– Tokyo Stock Exchange / Japan Exchange Group in Tokyo, Japan.
– Shanghai Stock Exchange in Shanghai, China.
– Hong Kong Stock Exchange in Hong Kong.
– Euronext in France, Portugal, the Netherlands, and Belgium.
– Shenzhen Stock Exchange in Shenzhen, China.
– London Stock Exchange Group in the UK and Italy.
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