Public markets

Markets where anyone can buy or sell a security, such as a stock exchange.

Example

Buying shares of a listed company through a brokerage account.

Important

Public markets publish a price every moment the market is open - private markets do not, which is why 'what is it worth' is a much harder question there.

Related terms

• Private markets — Markets for ownership stakes that are not listed on a public exchange - startups, private companies, and many funds.
• Liquidity — How quickly and cheaply an asset can be converted to cash without moving its own price.
• Equity — Ownership in a company or asset - a claim on whatever is left after debts, and on any growth in value.

Lessons that explain it

• Public versus private markets — One prices your asset every second the market is open. The other might not price it again for years - and that silence is not the same as stability. (11 min)

All 578 terms in the Investing glossary