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Stock exchange facts for kids

Kids Encyclopedia Facts

A stock exchange is a special marketplace where people buy and sell small pieces of companies, called shares or stocks. When you own a share, you own a tiny part of that company. Some stock exchanges are real buildings, like the New York Stock Exchange, while others are online, like the NASDAQ.

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The New York Stock Exchange, one of the biggest stock exchanges in the United States.

Famous Stock Exchanges

Many important stock exchanges operate around the world. They help companies raise money and allow people to invest.

Here are some of the most well-known stock exchanges:

The Great Depression

On October 29, 1929, the American stock market faced a huge problem. This day is known as Black Tuesday. A "crash" means that the prices of company shares dropped very quickly. Many people wanted to sell their shares, but very few wanted to buy them.

At the same time, many banks had used people's savings to buy shares. When the stock market crashed, these banks lost a lot of money. They could not give people their money back. This made it very hard for families to afford basic things like food and housing. This event marked the beginning of the Great Depression, a very difficult time for many people.

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See also

Kids robot.svg In Spanish: Bolsa de valores para niños

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Stock exchange Facts for Kids. Kiddle Encyclopedia.