Participants in the stock market range from small individual stock investors to larger investors, who can be based anywhere in the world, and may include banks, insurance companies, pension funds and hedge funds.

Equities (stocks or shares) confer an ownership interest in a particular company. This requires these two parties to agree on a price. Trade in stock markets means the transfer (in exchange for money) of a stock or security from a seller to a buyer. Stock exchanges may also cover other types of securities, such as fixed-interest securities (bonds) or (less frequently) derivatives, which are more likely to be traded OTC. Some large companies will have their stock listed on more than one exchange in different countries, so as to attract international investors. These and other stocks may also be traded ' over the counter' (OTC), that is, through a dealer. The exchange may also act as a guarantor of settlement. This makes the stock more liquid and thus more attractive to many investors. Many large companies have their stocks listed on a stock exchange. Main article: Stock exchange Interior hall of the Helsinki Stock Exchange in Helsinki, Finland, 1965Ī stock exchange is an exchange (or bourse) where stockbrokers and traders can buy and sell shares (equity stock), bonds, and other securities. īy country, the largest stock markets as of January 2022 are in the United States of America (about 59.9%), followed by Japan (about 6.2%) and United Kingdom (about 3.9%). Apart from the Australian Securities Exchange, these 16 exchanges are all in North America, Europe, or Asia. Of these, there are 16 exchanges with a market capitalization of $1 trillion or more, and they account for 87% of global market capitalization. Īs of 2016, there are 60 stock exchanges in the world.

The total market capitalization of all publicly traded securities worldwide rose from US$2.5 trillion in 1980 to US$93.7 trillion at the end of 2020. Investment is usually made with an investment strategy in mind. New York Stock Exchange London Stock Exchange National Stock Exchange of India Offices of Bursa Malaysia, Malaysia's national stock exchange (known before demutualization as Kuala Lumpur Stock Exchange)Ī stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses these may include securities listed on a public stock exchange, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity crowdfunding platforms.

Compare stocks and bonds lesson plan