What are Stock Markets?

Yes, “stock markets” is plural. Contrary to popular parlance, there is more than one market. In fact, there are dozens. 

Even though the nightly news talks about “the” stock market, the truth is that there are dozens of stock markets around the globe. The New York Stock Exchange (NYSE) and the Nasdaq are the two most well know, but there’s also the Boston Stock Exchange (BSE), the Chicago Board Options Exchange (CBOE), and others. 

These markets are essentially a shop where you can buy and sell stocks, bonds, options, ETFs, and other investments. 

Each of these markets has specific listing requirements, and some of them specialize. For example, the CBOE, as you can imagine, specializes in buying and selling options, while the Nasdaq tends to lean more toward tech companies. 

Some companies choose to list their stocks on multiple exchanges. Although for most individual investors, it doesn’t change very much about how you buy stocks. You won’t find a better price on one exchange vs. another. 

There are stock exchanges far beyond the borders of the U.S., as well. Our upstairs neighbors in Canada have the Toronto Stock Exchange, and you’ll find major stock markets in Tokyo, London, Bucharest, Johannesburg, Shanghai, Buenos Aires, and so many more. 

So what can different stock markets around the world offer that domestic markets can’t? In a world where faster growth is happening in many places outside U.S. borders, it’s never been more important to have a global portfolio.

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