## Stock Market
A stock market is a public marketplace where buyers and sellers of securities, such as stocks and bonds, come together to trade. It serves as the primary source of capital for companies in need of funding for growth or other activities. The stock market also provides investors with an opportunity to make money from the fluctuations in prices that occur when supply and demand are out of balance.
The two main types of stock markets are exchanges and over-the-counter (OTC) markets. Exchanges are organized, regulated markets where stocks can be bought and sold on behalf of shareholders through intermediaries such as brokers or specialists who match orders between different traders. Examples include the New York Stock Exchange (NYSE), Nasdaq, London Stock Exchange (LSE), Tokyo Stock Exchange (TSE), Euronext Paris, etc.
In contrast to exchanges, OTC markets are less regulated but still provide access to buyers and sellers interested in trading certain stocks outside the traditional exchange venues. These transactions can take place directly between two parties without going through a middleman broker or specialist; this kind of direct trading is often referred to as “peer-to-peer” trading. Examples include Pink Sheets LLC which lists mostly penny stocks not listed elsewhere along with bulletin board systems like TradeKing Financial Network Inc., which allow people who know each other offline to trade shares without using a broker/dealer platform such as E*Trade Securities Inc.. In some cases OTC trades may be facilitated by third party dealers called “market makers” whose job it is to ensure liquidity by buying or selling shares even if there aren’t any other traders willing to do so at that moment in time.
Investors have many options when selecting a stockbrokerage service provider: full service brokerage firms offer advice on what securities should be purchased while discount brokers act more like order takers offering limited advice but lower commissions than full service providers; online brokerages offer realtime access via internet websites while robo advisors go one step further by providing algorithmic portfolio management services based on customer profiles created upon registration; finally there’s day trading – a highly active approach used mainly by professionals looking for short term profits within hours or days rather than months or years – typically done via electronic communication networks such as ECN’s operated by large banks & financial institutions around the world .
Regardless how you choose your investment vehicle it’s important that you thoroughly understand both your own financial goals/risk tolerance levels before investing in any security whether its an exchange traded fund , mutual fund , index fund , single equity option etc . Finally don’t forget about taxes ! Most countries impose taxes on investments made through their respective local exchanges so always check with your national tax authority beforehand !
