A stock market (also known as equity capital market – ECM) is a private or public market for the trading of company stock.
A share (also referred to as equity) of stock represents a share of ownership in a corporation.
The stocks are listed and traded on stock exchanges which are organisations that specialise in bringing buyers and sellers of stocks and securities together.
Stock exchanges have multiple roles in the economy, including:
- Raising Capital for Businesses
- Mobilizing savings for investment
- Facilitating company growth
- Redistribution of wealth
- Corporate governance
- Creating investment opportunities for small investors
- Government capital raising for development projects
- Barometer of the economy
The top ten stock exchanges in the world are (in no order):
- Tokyo Stock Exchange
- Hong Kong Stock Exchange
- London Stock Exchange
- NASDAQ
- Euronext
- Australian Stock Exchange
- Taiwan Stock Exchange
- Stock Exchange of Singapore
- National Stock Exchange of India
- DAX
To get an understanding of all the markets, roles and sectors in banking and finance, enrol on the City Professional Programme. Stage 2 of the 4-stage programme is a full-day intensive training seminar (in London or online) where a highly experienced finance professional will explain everything you need to know about the banking and finance sector.
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