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Stock Market

"Stock market" is a term that may be a blanket reference to either the totality of all stocks, securities, and investment vehicles being traded or a specific reference to a market that exists for the sale of company stocks. In general usage the term "stock market" is a reference of daily economic performance. It is not uncommon to hear, "The stock market is up today," as a description of an overall good trading day on what is actually a variety of sales venues including the bonds market and the commodity market.

The average citizen does not draw these distinctions although they are considerable. For instance, the world wide stock market is estimated to be valued at about half of the global bond market value which is approximately $45 trillion.

The stock market should also be distinguished from the stock exchange which is a physical corporation or business entity that brings the buyers and sellers of stocks and securities together in one place. The stock market includes the trading of securities on many regional stock exchanges.

More Glossary Terms Explained here


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