What is a stock market?

The stock market refers to public markets that exist for issuing, buying, and selling stocks that trade on a stock exchange or over-the-counter. Stocks, also known as equities, represent fractional ownership in a company, and the stock market is a place where investors can buy and sell ownership of such investible assets.

What is a secondary market?

Once a stock has been issued in the primary market, all trading in the stock thereafter occurs through the stock exchanges in what is known as the secondary market. The term “secondary market” is a bit misleading, since this is the market where the overwhelming majority of stock trading occurs day to day.

Where do you buy and sell stocks?

Most of the time, stocks are listed and traded on exchanges, licensed venues where buyers and sellers meet, often with the assistance of a broker or other intermediary. These intermediaries will be members of the exchange and use their access to buy and sell shares on your behalf.

What are market orders & why should you use them?

Market orders are popular among individual investors who want to buy or sell a stock without delay. The advantage of using market orders is that you are guaranteed to get the trade filled; in fact, it will be executed as soon as possible.