The stock market explained

 The stock market is a place for investors and traders to buy and sell shares of public listed company 

PUBLIC LISTED COMPANY 

Public listed company 

A publicly listed company, 

also known as a publicly traded company or a public company, is one whose ownership is divided into shares of stock that are available for purchase by the general public on a stock exchange. These companies are required to adhere to regulations and disclose financial information to the public. Shareholders have partial ownership and may benefit from dividends and potential capital gains.

The stock exchange 

A stock exchange is a marketplace where securities, such as stocks and bonds, are bought and sold. It provides a platform for companies to raise capital by issuing shares and for investors to buy and sell those shares. Stock exchanges facilitate transparent and efficient trading through established rules and regulations. Well-known examples include the New York Stock Exchange (NYSE) and the NASDAQ in the United States, and the London Stock Exchange (LSE) in the United Kingdom.

Stock brokerages

Stock brokerages are firms that facilitate the buying and selling of securities, such as stocks,

bonds, and mutual funds, on behalf of investors. They act as intermediaries between investors and the stock exchanges. Brokerage firms provide various services, including executing trades, providing investment advice, research, and managing investment accounts. They may charge commissions or fees for their services, and investors typically open brokerage accounts to access the stock market through these firms. Examples of brokerage firms include Charles Schwab, Fidelity Investments, and E*TRADE.

Investor and trader 

An investor is someone who buys assets, such as stocks, bonds, or real estate, with the expectation of generating returns over the long term. Investors typically focus on the fundamental value of assets and may hold onto them for years, aiming to benefit from dividends, interest, or capital appreciation.

A trader, on the other hand, is someone who buys and sells financial instruments, such as stocks or currencies, with the aim of making short-term profits from market fluctuations. Traders may employ various strategies, including technical analysis, to predict short-term price movements and execute trades accordingly. They often have a shorter time horizon than investors and may engage in frequent buying and selling to capitalize on market volatility.