Stock Market
Overview
The stock market consists of a set of exchanges and other venues where shares of public companies are bought and sold. The Nasdaq and the New York Stock Exchange are two of the most well-known exchanges in the US, while major exchanges also operate around the world, including in Tokyo, Shanghai, London, and São Paulo.
In the early 1600s, the Dutch East India Company spurred the creation of the first-ever stock exchange, the Amsterdam Stock Exchange (now Euronext Amsterdam). To fund its ocean voyages, the company sold shares and paid dividends to investors. In 1792, 24 stockbrokers and merchants signed the "Buttonwood Tree Agreement" that created the New York Stock Exchange.
The sentence, "I own 10 shares of Apple stock," illustrates the difference between stocks and shares. Investors spend their careers trying to anticipate what the stock market will do next by structuring risk, using tax advantages, and undertaking due diligence. Roughly 90% of active managers of large, public funds underperform the major indexes.
1440 Findings
Hours of research by our editors, distilled into minutes of clarity.
Explore Business & Finance
The United States is home to more than 33 million businesses, the vast majority of which are small businesses, with millions being created (and others closing shop) every year. These businesses often rely on loans, provide the goods and services that keep the economy flowing, and sometimes even grow large enough to enter public markets or provide private investment opportunities. Explore key topics central to business and finance, from the role of the Federal Reserve to how initial public offerings work, how millions of American students finance higher education, and more.
Featured Topics
- 401(k)
- Amazon
- Bankruptcy
- Bitcoin
- Bonds
- Capital Gains
- College Tuition
- Consulting
- Creator Economy
- Credit Unions
- Federal Reserve
- Gig Economy
- Individual retirement accounts
- Inflation
- Initial Public Offerings
- Investment Banking
- Labor Unions
- Life Insurance
- Macy’s
- Minimum Wage
- Mutual Funds
- OpenAI
- Startups
- Stock Market
- Student Debt
- US Currency
- Venture Capital
- Wall Street
- Warren Buffett
- Y Combinator
