What is the Stock Market?

Definition

The stock market is where buyers and sellers come together to trade shares in eligible companies.

Understanding the stock market

Stocks are bought and sold on stock markets, which bring together buyers and sellers of shares in publicly traded companies. Stock markets operate kind of like auctions, with potential buyers naming the highest price they’re willing to pay (“the bid”) and potential sellers naming the lowest price they’re willing to accept (“the ask”). The actual execution of a trade price will be somewhere at or between the bid and the ask.

Source: Robinhood