The stock market refers to the collection of Markets and Exchanges where regular activities of buying , selling & issue of shares takes place for publicly held companies.
Such financial activities are conducted through institutionalized formal exchanges or over the counter market places which operate under certain rules and regulations. Stock market and stock exchange - both are used interchangeably, the latter term is generally the subset of the former.
Understanding the Stock Market_
If anyone says that he\she trades in stock market, then it means he\she buys and sells shares\equities.
Trade in stock market means the transfer of stock or security from a seller to a buyer. This requires two parties to agree on a price. Equities confer an ownership interest in a particular company.
since stock market brings together hundreds of thousands of market participants who wish to buy and sells shares, it ensures fair pricing practices and transparency in transactions.
Before the internet arrived, people interested in stock market gather at the trading ring to buy and sell stocks.
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