A stock market is a public market for the trading of company stock and derivaties at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.
The size of the world stock market was estimated at about $36.6 trillion US at the beginning of October 2008. The total world derivatives market has been estimated at about $791 trillion face or nominal value, 11 times the size of the entire world economy. value of the derivatives market, because it is stated in terms of NOTIOANAL VALUES, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. , the vast majority of derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable derivative 'bet' on the event not occurring.). Many such relatively illiquid securities are valued as marked to model, rather than an actual market price.
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