A stock market is a platform where companies raise capital by issuing shares to the public, and investors buy and sell those shares in hopes of earning profits.
- Stocks represent ownership in companies, giving investors a claim on a portion of their earnings.
- Stock markets facilitate trading between buyers and sellers, allowing for the exchange of shares.
- Investors can participate in stock markets through various channels, including brokerages, online platforms, and individual trading.
Types of Stocks
Crypto stocks are digital assets issued by companies, often with unique features like blockchain technology or cryptocurrency backing.
- Crypto stocks can be traded on various exchanges and platforms, offering opportunities for high returns but also higher risks.
- Exchange-traded funds (ETFs) are baskets of shares that track a specific market index, providing diversification and easier trading.
- Private companies often issue stocks to raise funding for their growth or expansion plans.
Stock Market Terms
A put option gives the buyer the right, but not the obligation, to buy a stock at a specified price (strike price) before a certain date (expiration date).
- Purchase orders are contracts between buyers and sellers outlining the terms of an exchange.
- Options trading involves buying or selling contracts that give the buyer the right, but not the obligation, to take specific actions with a stock.
