Stock Trading Knowledge Center

What is a Stock Market?

A stock market is a platform where buyers and sellers trade shares of publicly listed companies. These markets provide companies with access to capital in exchange for giving investors a slice of ownership. For investors, stock markets offer a way to potentially grow their wealth over time.

Major Global Stock Exchanges

Market Structure

Modern stock markets have evolved from physical trading floors to electronic networks, but the fundamental structure remains similar:

Primary vs. Secondary Markets

• Primary Market: Where companies first sell their shares to the public through Initial Public Offerings (IPOs).
• Secondary Market: Where investors buy and sell shares among themselves after the IPO.

Market Participants

Market Indices

Market indices track the performance of a group of stocks and serve as benchmarks for the overall market or specific sectors. Some of the most well-known indices include:

• Dow Jones Industrial Average (DJIA): Tracks 30 large, publicly-owned companies trading on the NYSE and NASDAQ
• S&P 500: Measures the performance of 500 large companies listed on US stock exchanges
• NASDAQ Composite: Includes all stocks listed on the NASDAQ stock exchange
• FTSE 100: Represents the 100 largest companies listed on the London Stock Exchange
• Nikkei 225: Price-weighted index of 225 companies listed on the Tokyo Stock Exchange

Trading Hours

Different stock exchanges have different trading hours. Here are the regular trading hours for some major exchanges (local time):

Note: Many exchanges also have pre-market and after-hours trading sessions.

History of Stock Markets