What is the Stock Market?
The stock market is the hub of exchanges or markets where shares of public companies are bought, sold, and issued regularly. All the activities conducted there regularly happen under a formerly defined set of rules and regulations to avoid any sort of discrepancy in the future.
Now the stock market is a collection of many different types of indexes and shares. Every country has its different index through which all the trading takes place. One of those indices is NASDAQ: ACRS at https://www.webull.com/quote/nasdaq-acrs. Let’s get acquainted with the term.
Stock market indices
An index is a measurement based on statistics that point out all sorts of changes occurring in the stock market. But before going further in the topic, first, understand the meaning of stock. A stock is a certificate that describes the ownership of a company. And the share is the ownership certificate of a stock of some company.
Since the basic terms are all clear, now let’s get back on an index topic. As said earlier, index changes with different countries. It doesn’t mean that the index of one country cannot be used in other. It means that every country chooses different indexes for measurement to make the stock market understandable to its users, just like that NASDAQ: ACRS is a type of index.
There are other indices, also. Let’s have a look at their names as well.
- NIFTY 50
- BSE SENSEX
- Nasdaq composite
- Dow Jones Industrial Average
And the list goes on as there are a large number of indices used in the stock market exchange.
How does this stock market work?
What happens in the stock market is that, companies divide their worth into shares, say ten million shares. They then put some part of their shares, say two million, out in the general public market to buy. For that part, the stock market comes in handy as it provides a safe environment with pre-formed rules and regulations on buying and selling these shares.
Once the market for the company’s shares is all set up, the real work starts. The general public starts buying those shares. The company prefixes the price of the shares says ten bucks per share.
If everything goes according to the plan, and all the shares are bought by the people, the company will be able to generate funds for the company’s progress. And as the company grows, its value also increases and thus the worth of its shares.
Once the price increases, people start selling those shares to get profit. And this is how both the parties, i.e., the buyers and sellers, benefit from these exchange of shares.
If you have the eye for knowing which company has greater potential, you can get plenty of benefits out of this stock exchange market like online brokerage. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.