You’ve likely heard of the New York Stock Exchange, but what is it? For our purposes, just know that an exchange is a marketplace where stocks are traded. It’s the link between a corporation and a trader.
A company will issue shares of stock to the public to raise money, and these shares are made available through a stock exchange. From there, individual traders like you and me can buy and sell stocks.
Stock Exchange | Common Abbreviation |
---|---|
New York Stock Exchange | NYSE |
National Association of Securities Dealers Automated Quotation System | NASDAQ |
American Stock Exchange | AMEX |
The mechanics are much more nuanced, but for me, stocks are nothing more than trading vehicles. I don’t buy stock in a company because I believe in their mission or product, I buy their stock because I think I will be able to sell those shares for a profit later on.
Even though some of the concepts you will soon learn about involve long-term investments, the goal remains the same; we’re in this to make money.
There are several exchanges in the US markets but the two main ones are the New York Stock Exchange (NYSE) and Nasdaq.
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