Econ Grapher

Stock Market

What is the Stock Market?
A stock market is a venue or platform where shares can be bought and sold by individuals, institutions (and even computers! e.g. algorithmic trading). Stock markets are generally highly regulated, and are supervised to prevent unfair trading practices, promote disclosure and flow of information, and generally keep the market functioning well. Trading generally occurs through the bid-ask process with a central limit order book, as bids (buy orders), and asks (sell orders) match trades are made. The orders of hundreds and even thousands of participants create the prices and trading volumes as they are matched. In some markets there are market makers i.e. individuals or institutions that stand between buyers and sellers; guaranteeing that there will always be a price and liquidity in exchange for taking the bid ask spread.

How does it relate to Markets?
Stock exchanges are the market, they are what people mostly refer to when they say "markets". But of course the stock market will also affect other markets as it is part of one big system. Changes in stock prices can impact on currencies, and bond markets, and stock prices (stock index) that are arrived at in the stock market can be used as a leading economic indicator.

Types of Exchanges
Exchanges are available for a range of instruments; organised and regulated trading occurs in the following:
Stocks - shares in individual companies
Bonds - debt securities
Options - derivatives (call and put options, and futures options)
Futures - standardised forward contracts
Commodities - spot trading in various commodities 

A Brief Listing of Exchanges
NYSE - New York Stock Exchange (US)
NASDAQ - NASDAQ (US)
CME - Chicago Mercantile Exchange (US)
LSE - London Stock Exchange (UK)
SSE - Shanghai Stock Exchange (China)
SZSE - Shenzhen Stock Exchange (China)
TSE - Tokyo Stock Exchange (Japan)
Deutsche Borse (Germany)
ASX - Australian Securities Exchange (Australia)
NZX - New Zealand Exchange (New Zealand)
TMX - Toronto Stock Exchange (Canada)
HKEx - Hong Kong Exchanges (China)
NSE - National Stock Exchange of India (India)
BSE - Bombay Stock Exchange (India)
BM&F Bovespa (Brazil)
BME - Bolsas Y Mercados Espanoles (Spain)
JSE - Johannesberg Stock Exchange (South Africa)
SIX - SIX Swiss Exchange (Switzerland)
KRX - Korea Exchange (South Korea)
TSEC - Taiwan Stock Exchange (Taiwan)

Sources and further reading:
WFE - World Federation of Exchanges
DMOZ - Exchanges

Graph Library:
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Original Source: http://www.econgrapher.com/encyclopedia-stockmarket.html

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