What Is The Stock Market About?
A stock market is a place to either buy or sell shares of stock
. This occurs at a physical location or it can be done via a computer. Stock represents an equity position in a traded company.The New York Stock Exchange is one example of where
stock tips or stock derivatives can be publicly traded.
"Publicani" were probably the first groups to offer shares of stock. They were private organizations that performed contract work for the Roman Empire. After the Middle Ages, the first corporate entity to issue stock was the Dutch East India Company. Its initial stock offering in 1606 represents what many believe to be the beginning of the multi-national corporation.
The biggest stock exchange in the world is the New York Stock Exchange. The market value of all the companies listed on the exchange comes in at over $25,000,000,000,000. It began in New York on Wall Street in New York City in 1792. It has significantly grown to where it is not unusual to see more than 2,000,000,000 shares traded daily, with a value of over $41,000,000,000.
A bull market is music to an investor's ears. Owners of stock can reap substantial profits during this "uptime" in the market. On the other hand, a bear market can result in heartburn for investors caught in the middle of a downturn. The level of profit or loss depends on the number of shares held.
Perhaps the most notable event in the history of the NYSE, and one of the causes of the Great Depression, was Black Thursday. It was the beginning of the "Crash" and occurred on October 24, 1929. The price of stocks began falling dramatically, and triggered a panic among investors. On Black Tuesday, October 29, 1929, sell-offs ruled the day. Market value of listed shares fell by more than $14,000,000,000.
Investors have long spent time trying to determine the next bull or bear market. What is new is that the Internet has had a profound impact on trading stock. Nowadays, investors can make a beeline straight to the exchange floor and buy or sell stocks at the touch of a few keys.
by: Michael Swanson
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