What is a market?

Chapter 1: Introduction

When talking about the market, we should not forget that the word has different meanings. The market is a wide range of financial services, products and instruments with many opportunities and risks.

That is why you can often hear at the end of a news block that the shares of some company have risen (or fallen) in price, which in turn indicates the stability or volatility of the market.

Simply put, the market is where companies, goods and services are bought and sold. You can buy stocks of companies in the market (their value can rise or fall as a result of positive or negative economic and corporate news), as well as bonds — debt securities with a fixed maturity date, which are considered to be the instruments with the least risk.

Exchange-traded funds (ETFs), derivatives, currencies and many other instruments are also traded on the market. You can learn more about them in the course.

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