What is the stock market?

Simple explanation

The stock market is a public marketplace where people buy and sell shares of companies. Prices change as buyers and sellers agree on values.

Picture this

An open-air market — but instead of fish or fruit, the products are tiny slices of real businesses.

— Cash

Real example

Major examples: Euronext Amsterdam, the New York Stock Exchange, the Nasdaq. They run during business hours and host trades worth billions every day.

Common mistake

Believing markets are random or rigged. Day-to-day they're noisy. Long-term, they tend to follow business reality.

Quick check

Takeaway

Markets are noisy short-term, sensible long-term. Patience converts noise into signal.

Related glossary terms