Whether at Home or Abroad, the stock market is Complex Enough. There is a Saying that if You can play Properly in 22 yards of the Market, The Score will be great. However, if you make a mistake, go Straight Back to the Pavilion. In other words, if you Understand the Market, you will get a Better Return Than the Investment. However, if you Make a Mistake, you will have to bear The Loss. But all Stock Markets are One?
America has a Stock market like the Indian Stock Market. The New York Stock Exchange And the Nasdaq are the only Things that Come to mind when Talking about the US stock Market. These two Exchanges are used for Trading stocks Around the world, including in North America. Of These exchanges, the Performance of the stock market is measured on the basis of The Index held By an Investor.
The three main indices for American stocks are the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite. Such as India’s Sensex and Nifty Fifty. Dow keeps track of the status of 30 large, blue-chip companies listed on the US Exchange. The S&P 500 consists of 500 large companies in various sectors, and the Nasdaq Composite represents the value of Nasdaq’s listed stocks.
Market index stocks monitor the performance of a group, which represents the entire market or a specific sector of the market, such as technology or retail companies. Most of the pigeon players in the stock market are aware of the S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average.
Although the story of the beginning of the path of the American stock exchange is quite old. The first stock market was started in Amsterdam in 1811. America did not enter any field of stock market till the end of seventeenth century. That’s when a small group of merchants made a deal with Buttonwood Tree. This group of men constantly bought and sold stocks and bonds. That company is what we know today as the New York Stock Exchange (NYSE).
Buttonwood traders are considered to be the inventors of the largest stock exchange in America. The Philadelphia Stock Exchange was the first stock exchange in America. Founded in 1890, the Philadelphia Stock Exchange had a profound effect on the city’s top economy. Which also had an impact on the development of the American financial sector and its expansion to the West.
The New York Stock Exchange took decades to develop. Buttonwood merchants observed and inspected the Philadelphia Merchants Exchange in 1818 to create the New York Stock and Exchange Board, which was modeled on the Philadelphia Merchants Exchange.
Members must adhere to a dress code to gain exchange access. In addition, they had to pay a fee. In 1838 it increased from 25 to 100.
The SEC (Securities and Exchange Commission) basically controls US stocks. It was established in 1934. It is an independent body with a quasi-judicial power. It has five president-appointed commissioners. The term of each of them is five years. No more than three commissioners are selected from the same political party. The President may nominate a Commissioner as the Chairman of the SEC.
There are basically four types of American stocks. No more than three commissioners are selected from the same political party. The President nominates one Commissioner as Chairman of the SEC. Like India, the US has four stocks – Mega Cap, Large Cap, Mid Cap and Small Cap.
Mega cap stocks represent the largest firms in terms of Market cap. Typically, mega-cap companies have a market cap of over 20 billion dollars. On the other Hand, the Market cap of large-cap stocks is over one trillion dollars. An Established Company with large-cap Stocks, stable revenue and Profit.
The market cap of midcap companies is usually between two billion dollars and one billion dollars. Mid-caps are actually high-potential companies of the future that increase revenue and profits. Midcap stocks are riskier than mega-cap and large-cap stocks and suitable for investors with a moderate risk appetite.
The market capitalization of small-cap stocks ranges from 300 million to 200 million. Small-cap stocks have a higher potential for growth but carry a higher risk than other segments.