What is the stock market, how does it work?

What is the stock market?

A stock Exchange is a centralized market where financial products are traded, called ” financial instruments or securities such as stocks, mutual funds, currencies, bonds and derivatives. It is also a computerized place where the securities of listed companies are exchanged in real time with permanent valuations based on supply and demand.

Supply comes from companies or states in need of funding, while demand comes from individual investors, corporations or states. Stock exchanges differ from other stock exchanges in that marketable assets are limited to stocks, bonds and Exchange Traded Products (ETPs).

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There are many exchanges in the world. Some of the largest are the New York Stock Exchange (NYSE), NASDAQ, and the Tokyo Stock Exchange (JPX). Other popular stock exchanges include the London Stock Exchange (LSE), the Shanghai Stock Exchange (SSE) and the Bombay Stock Exchange (BSE).

Find out more about the opening and closing times of the world stock exchanges

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