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Shares are small pieces of a company. Shares can be bought by humans, companies, and mutual funds. When buying shares in a company, the buyer owns a small part of that company. The price of a share can be based on many different things. The main thing that affects the price is the balance between supply and demand. If many buyers want to buy a stock the price goes up. If there are more sellers than buyers, the price goes down.
Stock brokers and analysts
Some buyers trade shares in stocks through a stockbroker. A stockbroker is a person who buys or sell stocks for their customers. A stockbroker can also help customers make choices in stocks. Their advice is based on public information about the companies.
Advice from stockbrokers
Stockbrokers advise their clients on how to manage their stocks. Some of the advice they give is:
- BUY (good expectation - buy the stock)
- HOLD (neutral expectation - keep the stock)
- SELL (low expectation - sell the stock)
Stock markets in the world
- NYSE (New York Stock Exchange) - USA
- NASDAQ (stock market for mainly technology shares) - USA
- London Stock Exchange - UK
- LIBOR - London International Board of Trade
Cultural changes in the stock market