Have you ever seen the acronyms, symbols, etc and wondered what they meant? Well I'll give you a basic 101 about the stock market, from this overview I'm sure you will be able to further research and educate yourself on the stock market.
NYSE, New York Stock Exchange, is the worlds oldest & largest stock exchange started in 1792. NYSE is located in New York city's historic Wall Street district. NYSE lists long-running, traditional firms such as Coca Cola, IBM and General Electric.
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| MTV's Jersey Shore rings the opening bell at the NYSE |
NASDAQ, an American stock exchange, originally stood for "National Association of Securities Dealers Automated Quotations". It is the largest electronic screen-based equity securities trading market in the United States and second-largest by market capitalization in the world. NASDAQ was established in 1971 and is usually the home of high-tech companies involved in electronics or the Internet, such as Microsoft, Intel or Yahoo.
Read more: NASDAQ vs. New York Stock Exchange | eHow.com http://www.ehow.com/about_7510488_nasdaq-new-york-stock-exchange.html#ixzz1VcfAcQBZ
Trading, buying and selling stocks/shares in a company.
Stocks/Shares, a percent of ownership in a company, money you give to the company in hopes they will make more money and give you your money back plus some. Best known as Investing in a Company.
Stock Market Index, A listing that tracks a group of stocks and their value. The stocks all have something in common. They may trade on the same exchange, belong to the same industry, or be about the same size. Indexes can help assess the results of mutual funds Source
More about Stock Market Index,
An index is a statistical measure of the changes in a portfolio of stocks representing a portion of the overall market.It would be too difficult to track every single security trading in the country. To get around this, we take a smaller sample of the market that is representative of the whole. Thus, just as pollsters use political surveys to gauge the sentiment of the population, investors use indexes to track the performance of the stock market. Ideally, a change in the price of an index represents an exactly proportional change in the stocks included in the index.
Read more: http://www.investopedia.com/university/indexes/index1.asp#ixzz1VdBjMss0
The three most popular indices that measure the value of stocks are:
1) The Dow Jones Industrial Average, most commonly referred to as The Dow, it contains 30 of the largest and most influential companies in the U.S. It is the most recognized index in the world, and the one that is frequently referred to as "the market".
Read more: http://www.investopedia.com/university/indexes/index2.asp#ixzz1VdESNtGb
2) The Standard and Poor's 500 Index, most commonly referred to as The S&P, The main drawback of The Dow is that it only contains 30 companies. The S&P 500 improves on The Dow in this respect by including 500 companies.
Read more: http://www.investopedia.com/university/indexes/index3.asp#ixzz1VdG0YGSM
3) The NASDAQ Composite Index, most commonly referred to as The Nasdaq but not to be confused with the NASDAQ stock market, represents all the stocks that trade on the Nasdaq stock market. The recent surge in popularity of technological stocks has launched the Nasdaq into the spotlight. Consequently, the composite index has become one of the premier indexes in the world.
Read more: http://www.investopedia.com/university/indexes/index4.asp#ixzz1VdIr6hAl
I hope this has sparked your curiosity or addressed your unfamiliarity about investing. So get ready, set, Invest!!!
In the words of Warren Buffett, "You sell in a rising market and buy in a declining market".
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