Question

Why are stock markets the most watched and reported of the financial security markets? What are...

Why are stock markets the most watched and reported of the financial security markets?

What are the main features of stocks & stock markets that are different from other types

of financial securities or markets?

Homework Answers

Answer #1

Stock markets are most watched because

1) The breadth of their coverage

2) Their high market cap

3) The easy liquidity they provide

4) Gaining more popularity with investor education

The main features are that it is an aggregation of buyers and sellers which are very tightly regulated

There are other markets as well

Forex Market: The largest market in the world. The forex market facilitates the exchange of one currency for another currency. Currencies are always traded in pairs, with many potential combinations available, but only some of which are very liquid.

Commodities market - where a person can trade in commodities

But the main difference is that, those markets are very sophisticated with very limited coverage and hence is difficult for a common person to follow and trade

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