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.
