What is the term for the market where buyers and sellers trade shares?

Study for the IGCSE Economics Test. Dive into multiple choice questions and informative flashcards, each with hints and clear explanations. Boost your exam readiness!

The correct term for the market where buyers and sellers trade shares is the stock market. This market specifically focuses on the buying and selling of company shares, where investors have the opportunity to own partial ownership of publicly traded companies. This can involve various financial instruments, such as stocks and equity securities, enabling capital raising for companies while providing liquidity and investment opportunities for buyers.

In contrast, the bonds market involves trading debt securities, allowing investors to loan money to entities in return for interest payments. The commodity market pertains to the trading of physical goods like metals, oil, or agricultural products, while the forex market deals with the exchange of currencies. Each of these markets serves distinct functions and caters to different types of financial instruments and assets, which highlights why the stock market is specifically designated for share trading.

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