The term stock market may be used to refer to the collection of both the buyers and the sellers of the stocks. In this case, the term stock refers to the various claims of the business. This may include the claims such as securities which have been listed on the public stock exchange. Others may include the bonds and the stock shares. Collectively, all these may be referred as financial instruments. The process of buying and selling all these financial instruments is known as the stock exchange. The term stock exchange may be defined as the facility which usually allows various brokers of the stock and the traders to buy and also sell their securities such as the stock shares, bonds and many other financial instruments.
The participants of the stock market are numerous. The participants may range from small to large stock investors. Such stock market participants may be the individuals who trader as sole investors and the institutions which have also invested in the stock market. In this case, such institutions may be the banks, the insurance companies and so on. Another participant of the stock market is the public corporations. For this type of institution, the stock market involves the trading of shares of their own. In the recent past, stock market involved the individual stock investors. However, as the days go by, the stock market is becoming more institutionalized whereby the buyers and the sellers of the financial instruments mainly involves the larger corporations. The stock market participant, irrespective of the size, may be located anywhere in the world. It is also good to not that the buying and selling of the financial instruments by these participants may also be done the stock exchange traders on their behalf. Learn more about the stick market here.
Today, most of the companies have viewed the stock market as one of the most sufficient of raising the money. Through this, the business will be traded publicly in stock market and additional financial capital will then be raised. This is mostly done by selling the ownership shares of a particular company in the public market. The exchanges in the stock market may be done either physically or through the use of computers. Physically, the exchanges done openly on the trading floor. This method is known as the open outcry. On the other hand, the exchanges using the computers usually involves the use of networks so as to exchange the financial instruments electronically. Click to discover more info.
Learn more from this link: https://en.wikipedia.org/wiki/Stock_exchange.