The New York Stock Exchange is the busiest and most important financial market in the world. Its stocks are traded by investors worldwide.

The NYSE is going fully digital amid fears of Covid-19. New technology is upending everything in finance, from saving to trading to making payments. For the first time in its 228-year history, the New York Stock Exchange will tomorrow open without its trading floor.

Historically, only NASDAQ was listed as a public company while the NYSE was a privately traded corporation. In 2006, the NYSE went public after operating as a not-for-profit exchange since its inception in 1792.

Independent stock exchanges operate all over the world; the NYSE, AMEX and NASDAQ are the three stock exchanges located in the United States, but they are only a few options in the global world of securities trading.

The three most widely followed indexes in the U.S. are the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite. The Wilshire 5000 includes all the stocks from the U.S. stock market.

Here’s how to invest in stocks in six steps:

1. Decide how you want to invest in the stock market.
2. Choose an investing account.
3. Learn the difference between investing in stocks and funds.
4. Set a budget for your stock investment.
5. Focus on investing for the long-term.
6. Manage your stock portfolio.
7. Stock investing FAQs.

Market cap—or market capitalization—refers to the total value of all a company’s shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. For example, a company with 20 million shares selling at $50 a share would have a market cap of $1 billion.

Largest Companies by Market Cap

Market capitalization is basically the number of a company’s shares outstanding multiplied by the current price of a single share. Market value is more amorphous and more complicated, assessed using numerous metrics and multiples, such as price-to-earnings, price-to-sales, and return-on-equity.

A stock’s P/E ratio doesn’t indicate whether a stock is good or bad. It only indicates the stock’s price in relation to its earnings. A stock with a lower P/E ratio is typically regarded as being cheaper than a stock with a higher P/E ratio. Stocks with a low P/E ratio may be underpriced in the short term.

P/E 30 Ratio Explained A P/E of 30 is high by historical stock market standards. This type of valuation is usually placed on only the fastest-growing companies by investors in the company’s early stages of growth. Once a company becomes more mature, it will grow more slowly and the P/E tends to decline.

Here’s what’s fueling the searing rally. Tesla’s stock has surged more than 20,000% since it went public in 2010. The searing rally has been driven by production growth, EV frenzy, and frontman Elon Musk. But many Wall Street analysts say Tesla’s bloated stock price is a bubble that’s bound to pop.

Tesla earns those credits by selling electric vehicles. At their price targets, Tesla would still be worth almost as much as Toyota (TM). The case for buying Tesla stock: Yes, Tesla stock is pricey, and buying it means that you believe the company can be worth much more than a car manufacturer.