Finance

What is the Stock Market?
The stock market is where stocks are traded. The stock market takes place on various stock exchanges the two larges exchanges are the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (NASDAQ).
The stock market is nothing new though, in fact in 1602 Dutch East India Company listed the first share of stock on the Amsterdam Stock Exchange.
What is the Stock Market?

At the stock market, stocks of listed companies are dealt. The term stock market is used for the overall stocks sold and bought at stock exchanges. For example, USA NASDAQ and NYSE are stock exchanges.

In the stock exchange everyone can join with respective stocks. In the stock market, small investors to big traders everybody trade together. The price of a stock depends on the demand and supply of that particular stock. In stock markets, the share dealing is done by a middleman. The seller and buyer mutually decide the price of the trade.

Stock Market Explained – A Guide to Understanding What a Stock Market Really Is
The stock market is any exchange or location where shares are bought or sold. Every share is electronically bought and sold on a particular stock exchange.

For example, in the United States there are something elsemajor stock market exchanges. Every separate stock market is responsible for recording how many shares of a particular company have sold, the price it has sold at, as well as giving other real time quotes and statistics about every thing that trades at its stock market exchange.
Each exchange trading floor is proprietary and is responsible only for the stocks that are traded on its floor.

Understanding the Stock Market – Moving Averages
By definition prices and moving averages will move in the same direction, since the moving average is calculated by adding prices and dividing by your chosen period. But there are times when prices and moving averages diverge, giving you some insight to price direction and advance warning of a possible trend change.

When prices and the moving average are moving in the same direction large price movements are possible. Either the average moves to the price or the price moves to the average. This is an important concept especially when price and average are moving in opposite directions.
If the price has crossed its moving average and is now moving in the contrary direction, it can be said that the moving average is providing support (or resistance, depending on whether the price is advancing or declining) for further declines because it takes some time for the moving average to change direction and the average will move to the price or the price will move to the average. Generally, the price will move back to the average, create a series of price points below the average which will in turn cause the average to begin to decline.

When moving averages are flat it becomes possible for the price to move in either direction without tests of the moving average because the price movements will change the direction of the average quickly.

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