The word “stock” simply refers to a supply. You may have a stock of T-shirts in your closet or a stock of pencils in your desk. In the financial market, stock refers to a supply of money that a company has raised. This supply comes from people who have given the company money in the hope that the company will make their money grow. A market is a public place where things are bought and sold. The term “stock market” refers to the business of buying and selling stock.

What would be the best title for this passage?

“What Is the Stock Market?”

Explanation

This passage defines both the words “stock” and “market” and its purpose is clearly to define the term. While the other statements are true, they do not immediately signal that the passage will be presenting a definition.

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