Module 2 of 6
How the Stock Market Works
Discover how stock exchanges work, what trading hours are, and how prices are determined.
What Is the Stock Market?
The stock market is a marketplace where buyers and sellers come together to trade stocks. Think of it like a giant organized marketplace â but instead of fruits and vegetables, people are buying and selling ownership in companies.
Stock Exchanges
Stocks are traded on exchanges. The two biggest in the United States are the New York Stock Exchange (NYSE) and NASDAQ. Each company's stock is listed on one exchange.
The New York Stock Exchange, the largest stock exchange in the world by market capitalization. Located on Wall Street in New York City.
The second-largest stock exchange, known for listing many technology companies like Apple, Google, and Amazon.
Ticker Symbols
Every public company has a unique ticker symbol â a short code used to identify its stock. For example, Apple is AAPL, Google is GOOGL, and Tesla is TSLA.
Ticker symbols are like nicknames for companies. In STONX, you will use these tickers to search for and trade stocks.
Market Hours
The US stock market is open Monday through Friday, 9:30 AM to 4:00 PM Eastern Time. It is closed on weekends and major holidays. There are also pre-market (4:00â9:30 AM) and after-hours (4:00â8:00 PM) sessions with lower volume.
How Prices Are Set
Stock prices are determined by supply and demand. If more people want to buy a stock than sell it, the price goes up. If more people want to sell, the price goes down. It is that simple at its core.
The highest price a buyer is currently willing to pay for a stock.
The lowest price a seller is currently willing to accept for a stock.
In STONX games, you can trade during market hours using real-time prices. The prices you see update live throughout the trading day!
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