Watching the numbers roll by on the bottom of your screen during a news cast might seem like nonsense to you. Those numbers are very important to many people because they make their fortune with stocks. They steadfastly watch the stock markets wanting to see how their investment is doing.
To understand the stock market you first need to understand what stocks are. Stocks are the capital raised by a company when they sell shares. Shares are offered through the stock market and the money taken in from those becomes the companys stocks.
There are several major stock exchanges in the world where shares are traded. Companys stocks are increased and decreased each day.
One of these stock markets is the NASDAQ. NASDAQ stands for National Association of Securities Dealers Automated Quotations. The NASDAQ is a United States based stock market. Its the worlds first electronic based stock market. It also trades more shares each day than any other stock market which means it has the most impact on stocks.
Another large stock market that is United States based is the Dow Jones Industrial Average. You might hear someone say that the Dow is up or down this is...
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