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
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…