What is the stock market ?

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The stock market is a marketplace where investors and purchasers come together to trade shares in eligible companies.

Stocks are bought and sold on the stock markets, which are places where investors buy and sell shares in publicly traded companies.

In a nutshell, stock markets operate similarly to auctions. Potential buyers put out an offer they're willing to pay for something (the bid), and potential sellers do the same (the ask), naming the lowest price they’re willing to accept for the transaction to happen.

In the majority of the case the execution of the trade's price will be close to or between the bid and ask. Stockbrokers typically execute these trades on behalf of portfolio managers or individual investors just like you and i.

From London to New York and in each country that possess one, stock markets helps connect buyers and sellers to trade stocks following an established list of standards.