Stock Market for Beginners

Before you invest in the stock market, you should read any guide on the stock market for beginners. The stock market for beginners guide will tell you all about stock exchanges and how the stock market works. It is important to understand how the stock market works so you invest in something you understand. There are more than one stock market in the US.

What are the major stock markets in the US?

The major stock markets in the US are:

Different stock markets have different rules of trading and requirements for stocks to be listed. Listing requirements take into consideration factors such as market capitalization and quantitative as well as qualitative factors.

Traditional stock markets

In the US, the New York Stock Exchange and the American Stock Exchange are known as the traditional stock market as opposed to newer electronics stock markets such as the Nasdaq.

Electronic stock markets

The biggest electronic stock market is the Nasdaq Stock Exchange. It is called an electronic stock market because the Nasdaq has no central trading place and no exchange floor like the NYSE and other traditional stock markets do. The Nasdaq's system is run by the National Association of Securities Dealers. The Nasdaq is also the US' largest stock market, larger than the NYSE and the AMEX listing major companies such as Microsoft (MSFT) and Intel (INTC). There are also stocks of small companies and emerging companies listed on the Nasdaq.

Over the Counter Market

When companies are too small to list their stocks on the major stock exchanges, their stocks can be traded over the counter or OTC. Many of the stocks traded over the counter are illiquid and are not traded daily. Stocks traded over the counter are considered riskier than stocks traded on major stock exchanges. There are many stock market for beginners books, see Stock Market for Dummies.

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