Topic 2: Market Participants and Instruments

The stock market consists of various participants including individual retail traders, institutional investors, market makers, and regulators.

Retail traders invest their own capital, often using online brokerage platforms. Institutional investors include hedge funds, mutual funds, and pension funds, often trading in large volumes and affecting market trends.

Key instruments traded include common stock, preferred stock, ETFs (Exchange-Traded Funds), and derivatives like options and futures. Each of these has different characteristics and use cases in trading strategies.

Regulatory bodies like the SEC (Securities and Exchange Commission) oversee market activities to ensure transparency, fair practices, and investor protection.