Copyright © Philip M. Parker, INSEAD. Terms of Use.

Stock Market

Definition: Stock Market

Stock Market

Noun

1. An exchange where security trading is conducted by professional stockbrokers.

Source: WordNet 1.7.1 Copyright © 2001 by Princeton University. All rights reserved.
 


Specialty Definition: Stock Market

DomainDefinition

Finance

The organised market where transactions in securities and marketable commodities are carried out under official surveillance. Source: European Union. (references)

Source: compiled by the editor from various references; see credits.

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Specialty Definition: Stock market

(From Wikipedia, the free Encyclopedia)

A stock market is a market for the trading of publicly held company stocks or shares and associated financial instruments (including stock options, convertibles and stock index futures). Traditionally such markets were open-outcry where trading occurred on the floor of an exchange. These days increasingly the markets are cyber-markets with buying and selling occurring via online real-time matching of orders placed by buyers and sellers.

Many years ago, worldwide, buyers and sellers were individuals investors and businessmen. These days markets have generally become "institutionalized", that is buyers and sellers are largely institutions whether pension funds, insurance companies, mutual funds or banks. This rise of the institutional investor has brought growing professionalism to all aspects of the markets.

How it works

The movements of the prices in a market or section of a market are captured in price indices called Stock Market Indices, of which there are many e.g. the Standard and Poors Indices and the Financial Times Indices. Such indices are usually market capitalisation weighted.

There are stock markets in most developed economies, with the world's biggest markets being in the USA, Japan, the UK, and Europe. There are global stock market indices that, because they delineate the global universe of stock opportunities, shape the choices and distribution of funds of institutional investors. The character of markets around the world varies, for example with the majority of the shares in the Japanese market being closely-held (by financial companies and industrial corporations) compared with the structures of ownership in the USA or the UK.

Derivative instruments

An option is a contract to buy or sell something at an agreed-upon price during a specified period. A buyer who believes that the price of a stock will rise can enter a contract known as a "call" which gives him the right to buy another's stock at a date three to nine months in the future. He pays a fee to the owner of the stock and will forfeit it if he does not exercise the option. But if the stock price rises enough, he can exercise the option and buy the stock at the fixed price, then re-sell it for a higher price to recover his premium and make a profit.

Someone who thinks that the price of a stock is about to fall can write a "put" contract with someone else who agrees to buy the stock at a fixed price. He does not have to own the stock at the time the contract is made. Again, he pays a premium. But if the stock price does fall, he can buy the stock at a low price on the market and then sell it for agreed-upon higher price.

Option contracts are traded like stocks, often by people who have no intention of exercising them. Although there is a guaranteed loss of the premium when an option is not exercised, there is enormous potential profit from trading the option itself--its price rises or falls with the price of the underlying stock. Someone who has a guaranteed buyer for 10,000 shares of stock at $35 has a contract of enormous value if the price of the stock falls to $10. He may not want to invest $100,000 to fulfill the contract and earn $350,000. But someone will want to buy the contract from him for more than he paid for it.

There are also two sorts of trades involving cash or stock not actually owned, short selling and margin buying. In short selling, someone sells stock that they don't actually own, hoping for the price to fall. They must eventually buy back the stock. In margin buying, someone borrows money to buy the stock and hopes for it to rise. Most industralized countries have requlations which require that if the borrowing is based on collateral from other stocks, then it can be at only a certain percentage of those other stocks value. Other rules include a prohibition of freeriding, that is, putting in an order to buy stocks without paying intially, and then selling them and using part of the proceeds to make the original payment.

Stock Market Regulation

Before 1929, there were few regulations governing trades. This was taken advantage of by the so-called "Robber Barons", to amass the large fortunes for themselves using (today illegal) techniques.

Since then, there have been periodic attempts to solve other perceived business problems with further regulation. As of this writing (in 2002) there is a stock market downturn that is prompting such considerations in the United States.

Finding related topics

Source: adapted by the editor from Wikipedia, the free encyclopedia under a copyleft GNU Free Documentation License (GFDL) from the article "Stock market."

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Synonyms: Stock Market

Synonyms: securities market (n), stock exchange (n). (additional references)

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Synonyms within Context: Stock Market

ContextSynonyms within Context (source: adapted from Roget's Thesaurus).

Mart

Noun: stock market, stock exchange, securities exchange; bourse, board; the big board, the New York Stock Exchange; the market, the open market; over-the-counter market; privately traded issues.

Source: adapted from Roget's Thesaurus.

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Crosswords: Stock Market

English words defined with "stock market": advanceblackcalamitous, clean up, closed-end fund, closed-end investment company, collapse, curb marketdisastrous, dive, Dow Jones, Dow-Jones Industrial Average, down, downtick, driftfatal, fateful, fluctuategain, Great DepressionHerbert Clark Hoover, Herbert Hoover, Hooverlowmarket analyst, market letternervouslyP.O., P/E ratio, plummet, plunge, plunk, President Hoover, price-to-earnings ratiorally, Real Estate Investment Trust, rebound, REITSettling day, soar, Standard and Poor's, Standard and Poor's Index, stock exchangetechnicalunhampered, unhindered, uptick. (references)
Specialty definitions using "stock market": balance with banks for periods of more than one month, bull operatorCAC 40, CROESUS, curb exchangedefensive security, due from banks at term, due from banks on time, due from banks-more than one month, due from banks-termsmarket theoriesNew York Stock Exchange index, nouveau marché, nouveau marché stock exchange, NYSE indexover the counterterm deposit with banks, time deposit with bankswash sale, Wilshire 5000 equity index. (references)

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Modern Usage: Stock Market

DomainUsage

Screenplays

Suppose the stock market crashes. (Some Like It Hot; writing credit: Robert Thoeren; M. Logan)

Look, Mead, part of my income comes from legitimate businesses, stock market -- (The Sopranos; writing credit: Isabel Clara-Simo; Ramn De Espaa)

You read the profit and loss statements like a vulture, and you play the stock market like a fox, but you store your nuts away like a squirrel. (Good Morning... and Goodbye!; writing credit: Jack Moran)

Be careful, Beth, because the stock market can be a cruel mistress. (NewsRadio; writing credit: Scott Bank; Jenny Banks)

Source: compiled by the editor from various references; see credits.

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Commercial Usage: Stock Market

DomainTitle

Books

  • How Charts Can Help You in the Stock Market (reference)

  • Stock Market Wizards: Interviews with America's Top Stock Traders (reference)

  • The Stock Market Course (reference)

  • You Can Be a Stock Market Genius: (Even If You're Not Too Smart) Uncover the Secret Hiding Places of Stock Market Profits (reference)

    (more book examples)

  

Periodicals

  

Theater & Movies

  

High Tech

Source: compiled by the editor from various references; see credits.

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Image Slideshow: Stock Market

Photos:
Stock Market

More pictures...

Computer Images:
Stock Market

More pictures...

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Photo Album: Stock Market

ThumbnailDescription & CreditThumbnailDescription & Credit

Falling stock market. Credit: Library of Congress.

Stock market run over by auto cutbacks. Credit: Library of Congress.

You and your infernal stock market have hurt Italian progress terribly. Credit: Library of Congress.

Cap Stubbs and Tippie. "My land! I made $41.73 in th' stock market, just wait till Mr. Budge hears this!". Credit: Library of Congress.

Source: pictures compiled by the editor from various references; see picture credits.

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Non-Fiction Usage: Stock Market

SubjectTopicQuote

Business

There is no official domestic stock market. (references)

Treasury bonds are traded on the stock market. (references)

Some others are Bauhaus, Stock Market, and Mr. Bricolage. (references)

Economic History

Slovak Rep

Slovakia's stock market is weak. (references)

Belgium

Belgium also has a well-established stock market. (references)

Indonesia

This can be accomplished through the stock market. (references)

Political Economy

THE BAHAMAS

The Bahamian Stock Market is now up and running with 15 stocks. (references)

EGYPT

Securities: International brokers are permitted to operate in the Egyptian stock market. (references)

India

India's stock market was weakened by the conflict, but the impact was relatively short-lived. (references)

Trade

Spain

The Spanish Stock Market comprises four stock exchanges. (references)

Spain

These banks also operate as investors and underwriters in the stock market. (references)

Spain

Leading Spanish private companies and banks are listed on the stock market. (references)

Travel

Chile

Large-scale business is conducted through local corporations whose shares are quoted on the stock market. (references)

Source: compiled by the editor from ICON Group International, Inc.; see credits.

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Spoken Usage: Stock Market

SpeakerPhrase(s)

Dennis Miller

The democratization of the stock market in some respects turned many workers into their own executioner.

Source: compiled by the editor from various references; see credits.

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Speeches: Stock Market

SpeakerTermPhrase(s)

George W. Bush

2001-2005The recession and the decline in the stock market slowed earnings and cut into tax revenues and created a budget deficit.

Source: compiled by the editor from various references.

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Expressions: Stock Market

Expressions using "stock market": junior stock market Nasdaq Stock Market parallel stock market stock market index stock market order stock market securities the stock market. Additional references.

Source: compiled by the editor from various references; see credits.

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Frequency of Internet Keywords: Stock Market

The following statistics estimate the number of searches per day across the major English-language search engines as identified by various trade publications. Hyperlinks lead to commercial use of the expression at Amazon.com.
 
ExpressionFrequency
per Day
ExpressionFrequency
per Day

stock market

10,455

stock market index

61

stock market quote

910

new york stock market

60

stock market news

469

learn about stock market

58

national association of securities dealer automated quotation system stock market

337

stock market tip

57

stock market investing

320

invest in the stock market

56

stock market game

301

stock market software

54

stock market information

268

singapore stock market

51

stock market report

238

stock market timing

50

stock market crash

209

investing in the stock market

50

1929 stock market crash

173

toronto stock market

49

stock market chart

167

stock market update

47

stock market trading

165

canadian stock market

46

stock market history

157

understanding the stock market

46

stock market price

139

stock market simulation

45

stock market research

107

world stock market

44

stock market ticker

79

stock market education

41

online stock market trading

77

stock market symbol

40

fantasy stock market

66

stock market trend

40

stock market newsletter

64

hong kong stock market

37

direct stock market

61

learning the stock market

37
Source: compiled by the editor from various references; see credits.

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Modern Translation: Stock Market

Language Translations for "stock market"; alternative meanings/domain in parentheses.

Albanian

  

treg i letrave me vlerë, bursë (exchange, exhibition, fellowship, grant, grants, scholarship, stipend, stock exchange). (various references)

   

Arabic 

  

‏سوق الأوراق المالية (shares market, stock exchange, wall street), ‏البورصة (exchange, stock exchange). (various references)

   

Bulgarian 

  

сделки на фондова борса, фондова борса (stock exchange). (various references)

   

Chinese 

  

股票市 (stock exchange), 股市 . (various references)

   

Czech

  

burza cenných papírù. (various references)

   

Danish

  

fondsbørs (exchange, stock exchange), børs (purse, wallet). (various references)

   

Dutch

  

effectenbeurs (exchange, pit, ring, stock exchange), beurs (purse, stock exchange, wallet). (various references)

   

Finnish

  

sopimusmarkkinat (curb market, junior stock market, OTC market, over the counter market, over-the-counter market, parallel market, parallel stock market, second tier market, third market, unlisted securities market, unofficial market), vaihtokelpoinen arvopaperi (financial assets, investments, marketable security, securities, stock exchange securities, stock market securities, transferable securities), rahoitusomaisuusarvopaperi (financial assets, investments, marketable security, securities, stock exchange securities, stock market securities, transferable securities), OTC-markkinat (curb market, junior stock market, OTC market, over-the-counter market, parallel market, parallel stock market, second tier market, third market, unlisted securities market), National Association of Securities Dealers Automatic Quotation System (NASDAQ, Nasdaq Stock Market, National Association of Securities Dealers Automatic Quotation, National Association of Securities Dealers Automatic Quotation System), NASDAQ (NASDAQ, Nasdaq Stock Market, National Association of Securities Dealers Automatic Quotation, National Association of Securities Dealers Automatic Quotation System). (various references)

   

French

  

place boursière (stock exchange), marché financier, marché boursier, bourse des valeurs mobilières (stock exchange), bourse des valeurs (stock exchange), bourse (stipend, Stock Exchange). (various references)

   

German

  

börse (board, change, exchange, market, purse, stock exchange, wallet). (various references)

   

Greek 

  

χρηματιστήριο (bourse, stock exchange, stockmarket). (various references)

   

Hebrew 

  

שוק "מ יות, בורס" (exchange, stock exchange). (various references)

   

Hungarian

  

részvénypiac (share market), értéktõzsde. (various references)

   

Italian

  

borsa (bag, bourse, exchange, fellowship, grant, grip, handbag, pannier, pouch, purse, sack, saddlebag). (various references)

   

Japanese Kanji 

  

式市 . (various references)

   

Japanese Katakana 

  

かぶしきしじょう. (various references)

   

Manx

  

sthockvargey, margey ollee (cattle market). (various references)

   

Pig Latin

  

ockstay arketmay

   

Portuguese

  

mercado de ações, bolsa de valores (stock exchange). (various references)

   

Romanian

  

cursul valorilor (the stock market). (various references)

   

Russian 

  

фондовая биржа (stock exchange, stock-exchange). (various references)

   

Serbo-Croatian

  

berza (money market, stock exchange). (various references)

   

Spanish

  

bolsa (bag, bagful, Bursa, exchange, grip, handbag, hand-bag, handgrip, holdall, market, pocket, poke, pouch, prize money, purse, sac, stock exchange). (various references)

   

Swedish

  

fondbörs (stock exchange), börskurser, aktiemarknad. (various references)

   

Turkish

  

menkul kıymetler borsası (securities market, security exchange, stock exchange), hisse senedi fiyatlarındaki oynamalar, borsa (bourse, change, exchange, market, money market, rialto, share market, stock exchange). (various references)

Source: compiled by the editor from various translation references.

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Misspellings: Stock Market

Misspellings

"Stock Market" is suggested in spellcheckers for the following: stok market. (additional references)

Source: compiled by the editor, based on several corpora (additional references).

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Anagrams: Stock Market

Scrabble® Enable2K-Verified Anagrams

Words within the letters "a-c-e-k-k-m-o-r-s-t-t"

-3 letters: comakers, mattocks.

-4 letters: coaster, coaters, comaker, comakes, comates, costate, cottars, cotters, maestro, markets, matters, mattock, mockers, ostmark, rackets, restack, restock, retacks, rockets, rotates, scatter, smacker, smatter, stacker, stocker, stomate, tackers, tackets, toaster, tomcats.

-5 letters: actors, arkose, armets, cameos, carets, caroms, cartes, casket, caster, castor, caters, coarse, coater, comake, comate, comers, comets, comtes, corset.

Source: compiled by the editor from various references; see credits.

SCRABBLE® is a registered trademark. All intellectual property rights in and to the game are owned in the U.S.A and Canada by Hasbro Inc., and throughout the rest of the world by J.W. Spear & Sons Limited of Maidenhead, Berkshire, England, a subsidiary of Mattel Inc. Mattel and Spear are not affiliated with Hasbro.

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INDEX

1. Definition
2. Synonyms
3. Crosswords
4. Usage: Modern
5. Usage: Commercial
6. Images: Slideshow
7. Images: Photo Album
8. Quotations: Non-fiction
9. Quotations: Spoken
10. Quotations: Speeches
11. Expressions
12. Expressions: Internet
13. Translations: Modern
14. Derivations
15. Anagrams
16. Bibliography


  

Copyright © Philip M. Parker, INSEAD. Terms of Use.