There are places like the New York Stock Exchange where all these transactions take place, but where are these stocks held you wonder? In markets. The two main U.S. markets are the NASDAQ and Dow Jones Industrial.
The Dow Jones Industrial Average holds 30 "Blue Chip" stocks. The heaviest traded stocks in all the markets are held here. For example, Wal Mart, AT&T, and Cocoa-Cola are all traded on the DOW.
For Cocoa-Cola, there are over 2 million shares outstanding in the company.
The stocks traded here are usually more popular, and change more often with bigger losses and earnings, and like any stock, you are never guarenteed a positive payback.
The NASDAQ is the second main market, and trades with companies like Cisco Systems, Microsoft, Electronic Arts and companies with not as much following, but still good stocks. Studies show that stocks bought on this market last a little longer term than those on the DOW.
Now that you know a lot more than you did about stocks, let's get some name recognition in our What stocks are HOT, and what stocks are NOT page.