Markets

Financial markets are the places where individuals and firms trade assets such as stocks, bonds, commodities, and derivatives. The prices of all investments are derived from the offers and bids different investors make for them in markets.

Frequently Asked Questions
  • Why is the market down today?

    Markets never move for just one reason, so there can never be just one answer to this question, and the answer will always vary from day to day. However, there are several factors including newly released corporate earnings data, changes in government policy, or news about the state of the economy that are common causes for moves in the market.

  • What are the different kinds of financial markets?

    The most common financial markets that most investors will interact with are stock markets and bond markets, as these investments will usually form the basis for most portfolios. However, there are several other types of financial markets that deal in more complex financial products called derivatives such as commodities, foreign exchange (FOREX), and options markets.

  • What is the difference between capital markets and stock markets?

    The stock market specifically refers to markets where individuals and institutions trade partial ownership of a company called shares of stock in that company. Capital markets refer to a group of markets where companies can raise money including the stock market, but also the bond market, where investors can buy portions of a company’s debt called bonds, as well as other, more complex investments such as options and futures.

  • What is the difference between primary and secondary markets?

    Primary markets are any market in which new stocks, bonds, or other types of investment are sold for the first time. A common example is an initial public offering (IPO), when a company first sells stock. Secondary markets are where existing investments are sold once someone had purchased them from the original seller. When people think of “the stock market,” or “the bond market” they usually are thinking of the secondary market for those investments.

Key Terms
The Role of Market Makers
How Do Recessions Impact Investors?
ull and bear, by sculptor Reinhard Dachlauer, in front of the Frankfurt Stock Exchange
What Is Market Efficiency?
Investment stock market
Playing in the Auction Market Requires Competitive Bidding
Businessman showing businesswoman something on a tablet in an office
Buy-Side
Stock analyst viewing financial market data on screen
What Is a Market Index?
What Is Post-Trade Processing?
skyscrapers of different sizes
Sell-Side
US-STOCKS-MARKETS
What You Need to Know About Standard & Poor's (S&P)
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Understanding T+1 (T+2, T+3)
Investment Strategies for Extremely Volatile Markets
The 2007-2008 Financial Crisis in Review
Black Swan
Job Market is a Conceptual Marketplace of Employees and Employers
USA-STOCK MARKET CRASH
Efficient Market Hypothesis (EMH)
An Overview of Bull and Bear Markets
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Learn About a Bubble in Economics
Inefficient Market Definition
Business Woman Thinking Account
Direct Market Access (DMA)
Capital Market vs. Stock Market: What's the Difference?
Market Depth Definition
What Are Some Examples of Financial Markets and Their Roles?
A group of traders examining information
What Are the Key Factors That Cause the Market to Go Up and Down?
Euroclear
Looking east toward Wall Street from the Freedom Tower construction site
To Fund Definition
Hand Holding Smart Phone Displaying Stock Market Data
The Challenges Of Investing In A Modern World
Strong Form Efficiency Definition
What Are the Characteristics of a Monopolistic Market?
Financial Markets for Investors
Placement
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Financial Markets: When Fear and Greed Take Over
Downtown Edmonton | Alberta | Canada
Alberta Investment Management Corporation (AIMCo)
Mount Lycabettus, Athens, Greece
Sovereign Risk
Stock market crash 3d illustration.
Investing Strategies for Market Crashes
Bull and bear at Frankfurt stock exchange.
Where Did the Bull and Bear Market Get Their Names?
Noise
Euro Coin on Euro Note
What Is the Euromarket?
Reconstitution
A small globe on top of a stock market chart.
What Is a Concession?
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Affidavit of Loss
What Is a Peer Group?
Planning Their Finances
5 Tips to Track the Markets for Busy Investors
a woman checking her phone with a cityscape background at night
Open-Market Transaction
Power boat
Market Cycles
Operational Efficiency Definition
Equity Market Capitalization
Speculative Bubble Definition
Bull and Bear
Secular Market
What Is a Hedging Transaction?
Blockholder Definition
Reflection of Stock Market Graph in Window
What Is a Market Proxy?
Stock market crash ticker
Market Disruption
A group of people talking around a table
What Is a Two-Sided Market?
Young man analyzing stock market data on phone
Re-Offer Price
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What Is Irrational Exuberance?
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What Is a Seller's Market?
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A passerby with an umbrella walks past a stock quotation board outside a brokerage in Tokyo
Market Psychology
Market Watch
What Is a Primary Market?
Page Sources
  1. S&P Global. “Capabilities.”