When we in the media describe the details and facts behind the fluctuations in the stock market, we automatically assume that you, the viewer or reader, are familiar with all the basic terminology that we use. Perhaps you are a little vague on the basics.
Stock markets are exchanges for the buying and selling of equities, or shares, in corporations.
The two largest are the New York Stock Exchange and Nasdaq . Each works very differently. The NYSE takes orders from brokers, who transmit them via an order ticket to their representatives on the trading floor. The floor broker takes the order to the trading post on the exchange floor and completes the order. The price is recorded and reported on the ticker.