What Is The Stock Market, And How Does It Work? – Nasdaq.com
First things first. The phrase “the stock market” is inherently incorrect because implies that there is only one such market, where in fact, there are many. And before getting into what stock markets are, let’s define what a stock is.
If you own a stock, you actually own a piece of that company. For example, if you own a share of Starbucks stock, congratulations, you are a part-owner of Starbucks. But how do you buy that stock in the first place? You have to go to the stock market to do that.
A stock market is a place where people buy and sell stocks. Those happen on any one of many sites, both physical and virtual, that are known as exchanges. T