donwloadimg

Download App

Log in to access Online Inquiry

What Is The Stock Market?

Views 66542022.04.08
playBtn

Key takeaways

  • Stock trading is like an auction.

  • A stock market is a place for sellers and buyers to trade in stocks.

  • An effective stock market could be vital to economic development.

Understanding the stock market

A stock market is a marketplace for financial activities such as issuing, buying and selling equities of companies. Shares of listed companies are allowed to be traded publicly on exchanges, such as New York Stock Exchange and the Nasdaq. A network of exchanges worldwide constitutes the global stock markets.

Generally speaking, stocks are the main trading category in the stock market. However, equity-related instruments, such as ETFs and derivatives, are also traded in the stock markets.

All transactions are made under agreed-upon rules stated by the exchanges and regulators to provide a rather fair trading mechanism for market participants.

Like an auction

In everyday conversations, the stock market is referred to as a place where sellers and buyers negotiate prices and trade shares.

To put it simply, the process of stock trading is just like an auction. The price of a matchmaking trading between the seller (asking price) and the buyer (biding price) is usually facilitated by stockbrokers. When you bid for a stock, it means you see the upward potential for its future prices. The final actual execution price is affected by many factors, including but not limited to market sentiment, demand and liquidity.

Purposes

A stock market is vital to economic development. Building a healthy and effective stock market will greatly improve the efficiency of capital utilization.

A stock market realizes the goal from two aspects. First, it provides a place for companies to issue their stocks to raise capital, which will be used to sustain or expand their businesses.

Second, the stock market provides an opportunity for individual investors to share in the investment income of listed companies. 

Trade like a pro with moomoo

Get free stock and start your professional trading today

Terms and conditions apply right-arrow
This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.Moomoo is a financial information and trading app offered by Moomoo Techonologies Inc.In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC).In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. ("Moomoo Financial SG") regulated by the Monetary Authority of Singapore (MAS). Moomoo Financial SG is a Capital Markets Services Licence (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore.In Australia, financial products and services available through the moomoo app are provided by Futu Securities (Australia) Ltd, an Australian Financial Services Licensee (AFSL No. 224663) regulated by the Australian Securities and Investment Commission (ASIC). Please read and understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other disclosure documents which are available on our websites https://www.futuau.com and https://www.moomoo.com/au. Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd. and Futu Securities (Australia) Ltd are affiliated companies.
Expand

Recommended