Stock market trading is a way to earn money with unlimited earning potential when you completely understand how it's work. The stock exchange is a corporation or mutual organization which provides trading facilities for stock brokers and traders, to trade stocks and other securities.
Each company will generally trade its stock on one Exchange, unless the company is very large, may be trade in multiple countries. Each country may have several Exchanges where different companies are listed.
Stock markets can be used as a barometer for economic health of a country. When production is high, unemployment is low, and inflation is low the market gains total value. This rise is a bull market. When stock prices start falling in a bear market, the economy is generally on a downturn. High inflation and high unemployment are usually seen at this time.
The stock market is the forum where publicly held company stock and related financial instruments are traded. Financial instruments may include stock index futures and stock options. Stock market trading is the actual sale or purchase of commodities or securities in the stock market itself.
Changes in stock prices aren't entirely dictated by the health of the economy. A large part has to do with investor psychology and how it relates to changes in supply and demand. You can become a very successful stock trader and/or investor, but only if you are willing to invest the time and effort required educating yourself about the real workings of the stock market and how everything fits together.
