Understanding Stock Market

The stock market is where investors can either buy or sell stock shares and conduct various other types of transactions in regards to stock. The stock market itself is not an actual location or facility; it is simply the term given to the actual activities and transactions involving stock shares. All of the shares exchanged in stock markets are listed on a stock exchange, which also includes, in some cases, privately-traded stock.

The world stock markets are estimated to be at about $36.6 trillion as of 2008, though the actual total in terms of face value is estimated to be at $791 trillion, which is actually eleven times that of the world economy in total.

There are various stock markets throughout the world. In the United States, the largest stock market is the New York Stock Exchange, or NYSE. Other large stock markets include the London Stock Exchange, Tokyo Stock Exchange, and the Paris Bourse.

Individuals that conduct transactions in stock markets are commonly known as stock brokers, who typically act as third parties in the actual buying and/or selling process. However, in recent years, many people will now use online trading sites and brokerage firms instead of enlisting the services of a stock broker.

The stock market conducts business on a daily basis, similar to regular company schedules. For example, the stock market hours for the NYSE are from Monday through Friday, starting at 9:30 a.m. to 4:00 p.m. Eastern Standard Time.