From the course: Finance Foundations (2019)

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Stock markets

Stock markets

From the course: Finance Foundations (2019)

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Stock markets

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Now that we know what a stock is and what a bond is, let's talk about stock markets and bond markets. A stock market or stock exchange is just a place, either physical or virtual, where people can come together and trade stocks. For example, the New York Stock Exchange started back in 1792 under a sycamore tree in New York on Wall Street, where people who own stocks or people who represented those who own stocks could get together and trade those stocks, a stock exchange. An example of a virtual exchange is the Nasdaq, started in 1971 as just a computer system where people could post up the fact I own some stocks and I want to sell them, or I want to buy some stocks. It was a virtual meeting place. The largest stock market in the world is the New York Stock Exchange, and the second-largest stock market in the world is the Nasdaq, which started this trend towards more virtual stock markets. Most stock markets now are not physical meeting places. Most stock trading happens virtually…

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