In its most fundamental sense, a market is any public place where products or services are bought and sold, either directly or through intermediaries. It also refers to the aggregate of people with the present or potential ability and desire to purchase goods or services. Securities markets, such as the New York Stock Exchange, are an important facet of markets in the financial domain.
The first law enacted by Congress to regulate the securities markets, approved May 26, 1933, as the Truth in Securities Act.
The Securities Investor Protection Corporation (SIPC) is a nonprofit corporation supported by its membership of securities brokers and dealers. It was developed to protect their customers and to promote confidence in the securities markets. In principle, SIPC provides certain amounts of insurance on cash and securities left on deposit in a brokerage account. This insures investors against the failure of the brokerage firm but not against a decline in the value of securities.
Securities markets are venues where securities are bought and sold, encompassing both organized exchanges and over-the-counter (OTC) markets. These markets facilitate the flow of capital from investors to companies, enabling economic growth and liquidity.
