The Stock Market

Date: August 11, 2017

Stocks, like normal goods and commodities, require a location or facility for transactions to take place. This “marketplace” where stocks are traded is, unsurprisingly, known as the stock market, or stock exchange.

The main purpose of the stock market is to facilitate secure and efficient exchanges of stocks and derivatives between buyers and sellers. Now imagine a world without a marketplace. Trying to exchange a pig for some flour would probably involve a painful process of searching a willing seller. Therefore, the stock market, run by brokers and traders, ensures that stocks are sold and bought more efficiently.

Every major and well-developed country would have a stock market. Some of the world’s busiest stock markets include New York Stock Exchange (NYSE), Toyko Stock Exchange (TSE), and our very own Singapore Exchange (SGX).