Search Investopedia

Stock Market

Filed Under » ,
Dictionary Says

Definition of 'Stock Market'

The market in which shares are issued and traded either through exchanges or over-the-counter markets. Also known as the equity market, it is one of the most vital areas of a market economy as it provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance.

Investopedia Says

Investopedia explains 'Stock Market'

This market can be split into two main sections: the primary and secondary market. The primary market is where new issues are first offered, with any subsequent trading going on in the secondary market.

Video Definition

Related Definitions

  •

    Stock

    A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. There are two main types of stock: common and ...
    Read More »

  • Blue Chip

    A nationally recognized, well-established and financially sound company. Blue chips generally sell high-quality, widely accepted products and services. Blue chip companies are known to ...
    Read More »

  • Equity

    1. A stock or any other security representing an ownership interest. 2. On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the ...
    Read More »

    • Exchange

      A marketplace in which securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange - such as a stock exchange - is to ensure fair ...
      Read More »

    • Shareholder

      Any person, company, or other institution that owns at least one share in a company. A shareholder may also be referred to as a "stockholder".
      Read More »

    • Over-The-Counter Market

      A decentralized market of securities not listed on an exchange where market participants trade over the telephone, facsimile or electronic network instead of a physical trading floor. ...
      Read More »

    • Equity Capital Market - ECM

      A market that exists between companies and financial institutions that is used to raise equity capital for the companies. Some activities that companies operate in the equity capital ...
      Read More »

    • Informationally Efficient Market

      A theory, which moves beyond the definition of the efficient market hypothesis, that states that new information about any given firm is known with certainty, and is immediately priced ...
      Read More »

    • Financial Market

      Broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically ...
      Read More »

    • Interlisted Stock

      A security that is listed on multiple stock exchanges. An interlisted stock could be a stock that trades on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX).
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions