What Is the Stock Market and How Does It Work?

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What Is the Stock Market and How Does It Work?

The stock market is where investors connect to buy and sell investments — most commonly, stocks, which are shares of ownership in a public company.

Definition: What is the stock market?

The term “stock market” often refers to one of the major stock market indexes, such as the Dow Jones Industrial Average or the S&P 500. Because it’s hard to track every single stock, these indexes include a section of the stock market and their performance is viewed as representative of the entire market.

You might see a news headline that says the stock market has moved lower, or that the stock market closed up or down for the day. Most often, this means stock market indexes have moved up or down, meaning the stocks within the index have either gained or lost value as a whole. Investors who buy and sell stocks hope to turn a profit through this movement in stock prices.

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About the
Eugene Green is a native of New Orleans. He is a 1976 graduate of St Augustine High School, where he graduated Salutatorian, served as the elected President of the Student Body and served for four years in the renowned Marching 100 and Concert Bands. Green graduated from Harvard University in 1980, where he earned a Bachelor of Arts Degree in Economics. Green served as the Manager of the Catering Division for Harvard Student Agencies, then and now the largest student-run corporation in the nation. He served as the elected President of the Harvard Black Students Association, and for his work, he earned the Frederick Douglas Award, as voted by his fellow students. Green also earned a Masters Degree in Business Administration (MBA) from Tulane University.