An Introduction To The Stock Market

The Stock Market, also known as the equity market, is a place where economic transactions take place in a loose network. Trading of company shares or stock and their derivatives at prices which both parties agree upon, including securities which are listed on the stock exchange as well as those which are alos only traded privately.

As of October 2008 the stock market across the world was valued at about $36.6 trillion. Total global derivatives are now about $791 trillion on their face of at their nominal value, which is 11 times the size of the entire world economy.

Until relatively recently investors in the stock market were sellers and buyers in the stock market such as individuals such wealthy businessmen. Nowadays the trend is for more institutionalized buyers and seller like pension funds, insurance companies, mutual funds, etc. this change has brought some improvements in the functioning of market operations.

This entry was posted in General. Bookmark the permalink.

Comments are closed.