What is a Market?

You can't truly understand the stock market if you first don't know what a market in general is. There are markets all over the place and there are so many different kinds. You probably use markets every week.

A market is where goods and/or services are bought and sold. For example, a supermarket is a type of market. It is where food and other goods are bought by you and sold by the store. This is a simple example, but it is exactly the same with any other market.

When it comes to investing, there are several markets as well. There is the stock market, bond market, and foreign exchange market. These are the most common markets and the foreign exchange market is the biggest market where foreign currencies are traded.

When you invest in the stock market, you are buying and selling corporate stocks with other buyers and sellers. If you want to buy a few shares of Johnson & Johnson, you will need to buy them on the market. If you want to sell them, you will need to sell them on the market.

It's just that simple!