Monday, July 14, 2008

The Stock Market Part II - In Layman's Term

For those beginners in the Stock Market field, one of the hardest part in understanding the niche is when they encounter a very technical terminologies which only leads in confusion in the subject matter. This leads me to search an article about what is stock market, in much simpler wordings or in Layman's term. Here's what i found.

What Is the Stock Market? Basics for bulls and bears by Holly Hartman

The word stock simply refers to a supply. You may have a stock of T-shirts in your closet, or a stock of pencils in your desk. In the financial market, stock refers to a supply of money that a company has raised. This supply comes from people who have given the company money in the hope that the company will make their money grow.

A market is a public place where things are bought and sold. The term "stock market" refers to the business of buying and selling stock. The stock market is not a specific place, though some people use the term "Wall Street"—the main street in New York City's financial district—to refer to the U.S. stock market in general.

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