The stock market refers to the collection of markets and Stock Exchanges where the issuing and trading of equities or stocks of publicly held companies, bonds, and other classes of securities take place. This trade is either through formal exchanges or over-the-counter (OTC) marketplaces.
Also known as the equity market, the stock market is one of the most vital components of a free-market economy. It provides companies with access to capital in exchange for giving investors a slice of ownership.
The worth of the company going public and the number of shares issued will determine the opening price of the IPO stock. All subsequent trading happens in the secondary market, where participants include both institutional and individual investors. A company uses the money raised from its IPO to grow, but once its stock starts trading, it does not receive funds from the buying and selling of its shares.
Stock Exchanges of larger companies is usually traded through exchanges. Such exchanges exist in major cities all over the world, including London and Tokyo. Stock Exchanges are entities that bring together buyers and sellers in an organized manner. On exchanges, stocks are listed and traded. Today, the execution of most transactions is by electronic means. Even the stocks themselves are mostly held in an electronic format, not as physical certificates.
Top 30 Stock Exchanges in the World:
|COUNTRY||STOCK EXCHANGE NAME||HEADQUARTER||INDEX|
|U.S.A.||New York Stock Exchange (NYSE)||New York||NYSE COMPOSITE (DOW JONES)|
|U.S.A.||NASDAQ OMX||New York City||NASDAQ|
|JAPAN||Tokyo Stock Exchange||Tokyo||NIKKEI|
|U.K.||London Stock Exchange||London||FTSE|
|CHINA||Shanghai Stock Exchange||Shanghai||SSE|
|HONG KONG||Hong Kong Stock Exchange||Hong Kong||HANG SENG (HSI)|
|CANADA||Toronto Stock Exchange||Toronto||S&P/TSX|
|BRAZIL||BM&F Bovespa||Sao Paulo||IBOV|
|AUSTRALIA||Australian Securities Exchange||Sydney||ASX|
|GERMANY||Deutsche Börse||in Frankfurt||DAX|
|INDIA||Bombay Stock Exchange (BSE)||Mumbai||SENSEX|
|INDIA||National Stock Exchange of India Ltd. (NSE)||Mumbai||NIFTY|