The stock market is a term familiar to many of us, investor or not. But what really is this stock market that the news and media constantly talk about all the time?
Broadly defined, a stock market or stock exchange is basically a place where buyers and sellers can meet and decide on the price when buying/selling the shares of publicly held companies. Some exchanges are physical locations while some are entirely virtual with their transactions carried out electronically. Some of the most famous stock exchanges include the New York Stock Exchange, NASDAQ, the London Stock Exchange and the Hong Kong stock exchange.
The stock price of a company is basically the agreed price of the last transaction done between a buyer and a seller of the stock. For example, if a buyer wanted to buy shares at $10 and a seller was willing to sell at that price, the ......