The Difference Between Stock Market And Stock Exchange
An alumnus of City University and a longtime resident of New York, Cherine Allaithy draws on nearly two decades of finance experience. She served as a sales assistant with the Max International Broker-Dealer Corp. during the course of her career. Cherine Allaithy is proficient in investments and the stock market.
The selling and buying of equities such as stocks take place on the stock market. Corporations sell shares on the stock market to raise capital to fund operations. By purchasing some shares, investors obtain ownership rights in the corporation. Investors become eligible for dividend payments. Stock performance determines investors’ profits.
The term stock market is often used interchangeably with the stock exchange. However, the stock exchange and stock market are not the same. The stock exchange is the infrastructure where trading takes place. The Nasdaq and New York Stock Exchange (NYSE) are two stock exchanges. The stock market is the umbrella term for multiple stock exchanges.