So What is a Stock Market?. The DOW demystified. Remember: A stock market is a “store” that sells business. You can buy ownership of businesses when you buy SHARES of stock. Companies decide on how many pieces (shares) of the company they want to sell. There are THREE ways stock have VALUE.
The DOW demystified
This form of valuation is based on historic ratios and statistics and aims to assign value to a stock based on measurable attributes. This form of valuation is typically what drives long-term stock prices.