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How does an exchange work? An exchange is a place where stocks, commodities, foreign exchange and goods are traded. The stock market is made up of exchanges such as the New York Stock Exchange and the Nasdaq Stock Market. These organisations bring together buyers and sellers and function in the same way as a market. They track supply, demand, and the related price of assets.

What is an IPO? When a private company sells shares to the public for the first time, the process is called an Initial Public Offering (IPO). It means that ownership of a company changes from private ownership to public ownership. It is the going public when a private company decides to sell shares to the public for the first time. Companies usually come up with IPOs in order to raise additional capital for their development.

Bull market We use the term bull market when stock prices are rising and market sentiment is bullish. A bull market trend occurs when there is an increase in a broad market index of 20% or more over a period of at least two months.

Bear market We use the term bear market when there is a decline in the overall market, index or even individual securities or commodities. We usually refer to a bear trend when a decline of more than 20% occurs.

Forex market The forex market otherwise known as the Foreign Exchange market or FX is the largest financial market in the world. It is made up of banks, individuals, trading companies, central banks, investment management firms, hedge funds, retail forex brokers who buy and sell currencies for profit. It is the most liquid market in the world.