A stock market, equities market, or simply stock exchange is an interactive network of buyers and sellers of securities, which represent ownership interests in companies; these can include publicly traded securities in a market such as the New York Stock Exchange (NYSE) or a private company’s stock in a preferred stock market. These exchanges offer the buying and selling of securities between buyers and sellers that are registered on their own exchanges. The securities are listed for sale to potential buyers who make bids based on a specified price set by the issuer, and then the winning bid is accepted and the seller is issued his or her rights in the securities.

Stock markets are highly leveraged and a high volume of trading causes large changes in value quickly. Buyers and sellers can buy large amounts of shares with borrowed money and then sell these shares for a profit to make a profit quickly when they rise in value. In comparison to the financial market and the real estate market which have a much longer time frame, stock markets can move quickly while prices remain constant. Some of the biggest players in the stock markets are: The New York Stock Exchange, NASDAQ, AMEX, OTCBB, Pink Sheet and the Chicago Board Options Exchange (CBX). There are also other smaller exchanges but these are the four biggest.

Stock market investing is highly speculative and carries a certain amount of risk. Potential investors should obtain extensive educational, research, and financial portfolio management and asset management services so that their portfolios are built to meet risk expectations. To avoid financial risks, potential investors should diversify their assets by owning a broad assortment of core investments, including both safe bonds and good quality stocks. To learn more about stock trading information, check out Global Stock Trading.