Info about Stock Market
About the US Stock Market
The US stock market, also called an equity market, is a network of economic transaction for the trading of company stock or shares as well as derivatives at an agreed upon price. These stock prices, also called securities, are traded privately but primarily on a stock exchange. The US stock market has two primary stock exchanges; the New York Stock Exchange (NYSE) and the American Stock Exchange (ASE). The New York Stock Exchange is the largest stock market in the country according to market capitalization.
There are a variety of participants who buy, sell and trade stocks in the US stock market including retail investors, institutional investors like banks, insurance companies and mutual funds, and publicly traded corporations who trade their own shares. The participants of the US stock market include small individual stock investors to large hedge fund traders; the latter of which have a professional at the stock exchange to deal in the buying, selling or trading of stocks. The primary purpose of a stock exchange is a place to organize the exchanges of securities between those buying and selling stock, by creating a marketplace for this to occur.
Trading at the US stock market consists of a buyer who bids for a stock at a specific price and a seller for ask for a specific price for their stock. If you are buying or selling a stock at market, it is different in that you are willing to buy or sell a stock at any price. During a trade, the buyer and seller must both agree on the price before the transaction is complete. Occasionally, more than one person or company wants to buy a specific stock, in which the seller may choose the highest bidder.
There have been a variety of stock market crashes which affected the US stock market heavily. A stock market crash exists when there is a sudden or sharp dip in the prices of stocks that are listed on the US stock exchange. It is often the result of economic turmoil, panic, and investing public’s lack of confidence in the companies. Perhaps the most notable stock market crash in history was the Wall Street Crash in 1929 when billions of dollars were lost. Additionally, there was a large stock market crash in 1973, one called the Black Monday of 1987, the Dot-com Bubble of 2000, and most recently; the stock market crash of 2009 due mainly to the economic crisis.