What is Stock Market

A stock market or equity market may be a public (a loose network of economic transactions, not a physical facility or discrete) entity for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange furthermore as those solely traded privately.The size of the planet stock market was estimated at regarding $36.6 trillion at the beginning of October 2008.[1] the overall world derivatives market has been estimated at regarding $791 trillion face or nominal price,[2] eleven times the scale of the whole world economy.[3] the worth of the derivatives market, as a result of it's stated in terms of notional values, can't be directly compared to a stock or a hard and fast income security, that historically refers to an actual price. Moreover, the overwhelming majority of derivatives 'cancel' one another out (i.e., a by-product 'bet' on an occurrence occurring is offset by a comparable by-product 'bet' on the event not occurring). several such comparatively illiquid securities are valued as marked to model, instead of an actual market value.The stocks are listed and traded on stock exchanges that are entities of an organization or mutual organization specialised within the business of bringing consumers and sellers of the organizations to an inventory of stocks and securities along. the most important stock market within the us, by market cap, is that the the big apple Stock Exchange (NYSE). In Canada, the most important stock market is that the Toronto Stock Exchange. Major European samples of stock exchanges embody the Amsterdam Stock Exchange, London Stock Exchange, Paris Bourse, and therefore the Deutsche Börse (Frankfurt Stock Exchange). In Africa, examples embody Nigerian Stock Exchange, JSE restricted, etc. Asian examples embody the Singapore Exchange, the Tokyo Stock Exchange, the Hong Kong Stock Exchange, the Shanghai Stock Exchange, and therefore the Bombay Stock Exchange. In Latin America, there are such exchanges because the BM&F Bovespa and therefore the BMV.