Are you looking to learn about the stock market for the first time?
This guide is for you – in simple language, without any technical details, we will explain the working of the stock market in the USA step by step.
1. What is the Stock Market?
The stock market is a place where companies sell their shares (shares), and people (investors) buy them. When you buy shares of a company, you become the owner of a small part of that company.
🔹 2. Main Stock Exchanges of the USA
The USA has two big stock exchanges
NYSE (New York Stock Exchange):
The world’s largest and oldest exchange.
U.S. Stock Market Works – A Simple Beginner’s Guide (2025)
NASDAQ:
Home of tech companies (like Apple, Google, Amazon).
🔹 3. How does the stock market work?
Step-by-Step Simple Process:
The company brings its IPO (Initial Public Offering).
– To sell shares for the first time.
Investors buy and sell shares through the stock exchange.
Brokers (like Robinhood, E*TRADE) provide trading facilities to investors.
Prices depend on demand-supply:
– If the demand for a share is high, the price increases.
– If people are selling, the price falls.
4. Stock Types
Common Stocks: Voting rights are available, but there is also a lot of risk.
Preferred Stocks: Fixed dividend is available, but no voting rights.
5. How to start in the Stock Market?
Beginner Steps:
Beginner Steps:
- Open a brokerage account (Robinhood, Fidelity, etc.)
- Verify your identity and deposit money
- Learn about companies, sectors, and trends
- Start with small investments or ETFs
- Always do your research
🔹 7. Key Stock Market Terms
| 📌 Term | 💡 Simple Meaning |
|---|---|
| IPO | First-time share offering |
| Bull Market | Market is rising |
| Bear Market | Market is falling |
| Dividend | Share of company profits |
| Portfolio | Your collection of investments |
Your Thoughts
USA’s stock market is a powerful platform to build wealth – but only with the right knowledge and patience can one be successful.
If you are a beginner, start with small amounts, use trusted apps, and always keep your risk tolerance in mind.