Stock markets are also known as equity market and basically they are the aggregations of all the buyers and the sellers of the stocks like who lose their networks of the economic transactions that are not some kind of physical facility or the discrete entity. These are basically the securities that are listed on the stock exchange as well as on those who only trade them privately.
Size of the stock market:
When it comes to the size of these stock markets, they are portioned in a numerous ways. One of the most common ways is done by the country where all of these companies are domiciled. For instance, the two most popular companies known as Nestle and Novartis, they both are domiciled in Switzerland. This is how they both are the parts of the Swiss stock market. This is how the size of the market can be determined.
In the year 2012, the size of the overall stock market was about 55 trillion dollars. In terms of the countries of the world, the largest stock markets of all was of the United States that was about 34 percent and then it was followed by Japan with 6 percent as well as United Kingdom with the percentage of 6 as well. Then in 2013, they all went up more.
What is Stock exchange?
Everybody knows that the stock exchange is the place where the stocks are exchanged or traded. There are countless companies that want their stocks to get listed on the list of stock exchange. This shows how much important these stock exchange markets are all over the world. There are so many stocks that can be very easily traded over the counter i.e., through some kind of dealers. However, the large companies always have their stocks listed on so many exchanges all around the globe.
The stock markets are one of the most important components of the free market economies, as they provide all the companies with access to the capital in exchange for giving all the investors a slice of the ownership in some specific company. The stock markets actually makes it possible to grow all of the small initial sums of the money into the large ones for becoming wealthy without taking any kind of risk of starting the business as well as making the sacrifices that usually accompany any kind of high paying career.
All the stock exchange markets all over the world allow all of the investors to participate in every kind of the financial achievements of the companies they hold shares of. When any of these companies are found profitable, different kind of investors of the stock exchange market tries to make some money from the dividends that these companies pay out. They also sell the appreciated stocks at some profit that is known as the capital gain in terms of the stock exchange markets. On the other side, the investors can also lose their money if the companies they hold the shares of lose their money. This is the time when these investors sell their stocks at loss.