The Stock Market is another area where most people do not fully comprehend its functionality. Everyone has heard of the Dow Jones or the TSX Indexes, but what really drives the stock market.
Firstly we need to define what the stock market is. Investopedia defines The stock market as "the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place. Such financial activities are conducted through institutionalized formal exchanges or over-the-counter (OTC) marketplaces which operate under a defined set of regulations. There can be multiple stock trading venues in a country or a region which allow transactions in stocks and other forms of securities".
In order to fully understand what the definition above really means, I found this instructional video from Netflix that does an excellent job explaining what the Stock Market does, what exactly it measures, and demonstrates the impact it has had in our society. A great little educational video to understand the overview of the Stock Market. Enjoy !!!!
