The sharemarket is a place where investors can buy and sell shares, which are small pieces of ownership in companies. It's a way for companies to raise money and for investors to potentially earn returns by investing in their growth.
The sharemarket brings together buyers and sellers to exchange securities like shares, bonds, investment trusts, and exchange-traded funds (ETFs). These securities can be listed on stock exchanges such as the New York Stock Exchange (NYSE) or the Australian Securities Exchange (ASX). Each company has a unique stock code, usually three or four letters, making them easy to identify and trade.
Stocks are bought and sold on stock markets, which work like auctions. Buyers name the highest price they’re willing to pay (the "bid") and sellers name the lowest price they’ll accept (the "ask"). The trade price falls somewhere between the bid and the ask. Stockbrokers usually place trades on behalf of portfolio managers or individual investors.
The sharemarket includes a wide range of participants, from individual retail investors like you, to large institutional investors such as fund managers, insurance companies, banks, and pension funds.
CommSec Learn is intended to provide general information of an educational nature only. Any securities or prices used in the examples given are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance. Investing carries risk.
Any securities or prices used in the examples given are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance. Investing carries risk.
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