3.4 Stock Exchanges

3.4 Stock Exchanges

The stock market is the global market for buying and selling new and second-hand stocks and shares.

A stock exchange is a business organisation that helps companies and government authorities to sell their shares to people and other organisations that want to buy them.

What are stocks and shares?

A shareholder owns a fraction (or share) of the whole company’s value

Advantages

Disadvantages

v  Share price increases – you can sell at a profit

v  Get paid Dividends (=your share of firm’s profits)

v  Perks or discounts

v  Share value may…