In this section, we will discuss the marketplace where stocks are bought and sold, and the various measures that are used by investors to tell how well the market is doing. Each of these exchanges has its own rules and regulations that govern which companies can be listed on the exchange. Launched in 1817, the New York Stock Exchange lists some of the biggest companies in the country. The American Stock Exchange, which was launched in 1842, is commonly viewed as the younger sibling of the New York Stock Exchange. At the end of each day, these exchanges record what is known as closing prices for each stock.
Closing prices are generally the last price during the day at which the stock was bought or sold.
The closing prices in these exchanges are what are often used to tell if the stock market is doing well or not. The most prominent stock market indicator in the United States is The Dow. Charles Henry Dow first published the Dow on May 26, 1896. Today, The Dow is made up of 30 stocks of some of the biggest companies in America. The stocks for the Dow are pulled primarily from the New York Stock Exchange.