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
Market Maker Definition: What It Means and How They Make Money
The Impact of Recessions on Investors
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What Is Market Efficiency?
Investment stock market
Auction Market: Definition, How It Works in Trading, and Examples
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Buy-Side
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Market Index: Definition, How Indexing Works, Types, and Examples
Post-Trade Processing: Definition, How It Works, and Examples
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What Is Sell-Side? Definition and Role in Financial Markets
US-STOCKS-MARKETS
Standard & Poor's (S&P)
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Composite Index: Definition, Types, and Examples
T+1 (T+2, T+3) Explained: Definitions and Settlement Example
Investment Strategies for Extremely Volatile Markets
The 2007–2008 Financial Crisis in Review
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Job Market
USA-STOCK MARKET CRASH
Efficient Market Hypothesis (EMH): Definition and Critique
An Overview of Bull and Bear Markets
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What Is an Economic Bubble and How Does It Work, With Examples
What Is an Inefficient Market? Definition, Effects, and Example
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Direct Market Access (DMA): Definition, Uses, and Benefits
Capital Market vs. Stock Market: What's the Difference?
What Is Market Depth? Definition, How It's Used, and Example
What Are Some Examples of Financial Markets and Their Roles?
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Factors That Cause the Market to Go Up and Down
Euroclear
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To Fund Definition
Hand Holding Smart Phone Displaying Stock Market Data
The Challenges of Investing in a Modern World
Strong Form Efficiency
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
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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
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Euromarket
Reconstitution
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Concession
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Affidavit of Loss
Peer Group: Definition, How It's Used, Example, Pros & Cons
Planning Their Finances
5 Tips to Track the Markets for Busy Investors
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Open-Market Transaction
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Market Cycles
Operational Efficiency: Definition, Examples, Vs. Productivity
Equity Market Capitalization
Speculative Bubble
Bull and Bear
Secular Market
Hedging Transaction
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Market Proxy
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Market Disruption
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Two-Sided Market Defined
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Re-Offer Price
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Irrational Exuberance
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Seller's Market
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Market Psychology
Market Watch
Primary Market: Definition, Types, Examples, and Secondary
Page Sources
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  1. S&P Global. “Capabilities.”