The World of Stocks and Stock Markets
Stocks represent ownership in companies, offering a potential return on investment. The stock market is the place where buyers and sellers meet to exchange shares of these companies.
- Types of Stocks: Equity stocks (representing ownership), preferred stocks (non-voting or higher priority than common stock), and debt securities (loans to companies)
- Corporate vs. Non-Corporate Companies: Publicly traded (owned by the general public) and privately held (owned by a single individual, group, or entity)
Stock Market Terms
- Bull Market: A prolonged period of rising stock prices and economic growth.
A prolonged period of declining stock prices and economic downturn. - A significant decline in the value of stocks and other assets, often caused by excessive speculation or a lack of investor confidence.