Let's take a look at some of the basic stock market terms that will help you gain an understanding of the stock market.

• Common Stock- Common stocks are securities in a corporation that entitle the holder to a share in the company's fortunes through dividends and capital appreciation.
• Preferred Stock- Preferred stocks are stocks that provide for a dividend that is paid before the dividends paid to common stock holders. A preferred stock takes presidence over a common stock in the event of a company's liquidation.
• Annual Report- A document sent to the company's shareholders that reports on the companys financial results for the preceding fiscal year.
• Dividend- Shares of the after tax profit that is distributed to the company's shareholders.
• Stock Symbol- The series of letters that represent a particular stock. For example, MSFT for Microsoft.
• Stock Chart- A chart representing the price action of a particular stock over time. The chart can also show other related items such as volume and moving averages.
• Bear Market- A market in which the prevailing conditions tend to drive prices lower.
• Bull Market- A market in which the prevailing conditions tend to boost prices upward.
• Federal Reserve Board- The government agency that monitors and regulates the nation's money supply, banking system, and interest rates.
• Stock option- a purchased contract that allows the purchaser to either buy or sell a stock at a specified per share price during a specified time period.
• Mutual Fund- a diversified portfolio of stocks managed by a professional investment firm. Investors can use a mutual fund to diversify their holdings.

At it's most basic, the stock market is simply a market that brings buyers and sellers together. In today's stock market you will need a stock broker to facilitate your trades. You can easily choose from the many that are available online.

Your broker will then be able to buy and sell stock on your behalf. Depending upon your arrangement, the company may or may not provide you with research and advice. In most cases, you will simply type in your order online and the broker will execute it. Although it may seem like your order is automatically filled, each transaction does in fact match a buy order with a sell order. Because many stocks are highly liquid the order fills very quickly in many instances.

The stock market today is a huge operation. Countless millions of shares are traded each day. Markets are trading at some spots on the globe almost non-stop. Before the market open in New york, they are already well underway in London. Just after the final bell on Wall Street the stock exchanges in Asia are getting ready to resume trading.

Stock markets are busily trading shares of stocks all over the world. Whether it is the Ghana Stock Exchange in Africa, the Shenzhen Stock Exchange in China, the Rio de Janiero Stock Exchange In Brasil, or the Beruit Stock Exchange in the Middle East; you can be sure someone is willing to buy and somebody is ready to sell. At it's most basic that is what makes a market.