stock market vs stock exchange

The stock market is a collection of exchanges where securities like stocks and bonds are bought and sold.

Stock exchanges are the organisations that facilitate the trading of those stocks between buyers and sellers.

Companies raise money on the stock market by selling ownership stakes to investors (i.e selling us as investors a piece of their companies.) These equity stakes are known as shares of stock.

By listing shares for sale on the stock exchange that make up the stock market, companies get access to the capital (money) or funding that they need to operate and expand their businesses without having to take on debt.

In exchange for the privilege of selling stock to the public, companies are required to disclose information and give shareholders a say in how their businesses are run. (i.e they have to tell their shareholders what they are spending our money on)

Some exchanges are physical locations where transactions are carried out on a trading floor. (Think 'Wolf of Wall St)

The largest stock exchanges in the world are the New York Stock Exchange (NYSE), the NASDAQ, and the Tokyo Stock Exchange. Other large exchanges include China’s Shanghai Stock Exchange, the Hong Kong Stock Exchange, Euronext, the London Stock Exchange and the Toronto Stock Exchange.

The Stock Market's can be classified as Bullish or Bearish, depending upon the point of view of the investors.

A market where the investors are looking to buy shares in anticipation of future profits is a bull market.

A bear market refers to a market where investors are trying to sell of their stocks as they are expecting a loss in the future.