Source: https://mochatrade.com/learn/us-market-structure/us-stock-market-explained

# US Stock Market Jargon and History explained: Start Here
URL: https://mochatrade.com/learn/us-market-structure/us-stock-market-explained
Last modified: 2026-10-09

Lecture 1.1 of MochaLearn, Module 1: US market structure. 8:11. Video: https://www.youtube.com/watch?v=Y4m6IEVhkBE

Who does what in the US market — the Treasury, the Fed, the SEC, the exchanges — told through the problems each was built to solve.

## About this lecture

The Fed, the Treasury, the SEC, Nasdaq—who does what in the US stock market, and why do these names keep appearing in financial news?
In this lecture, Pratham uses the history of the American market to explain its institutions. Instead of memorising acronyms, follow the problems that led to each part of the system.
You'll learn about:
- Government bonds, the Treasury and the origins of the NYSE
- Bank runs, the Federal Reserve and the FOMC
- The roles of the SEC, CFTC and FINRA
- Economic data from the BLS, BEA and Census Bureau
- The Dow, S&P 500, Nasdaq 100, Russell 2000 and VIX
- Exchanges, market makers and the National Best Bid and Offer (NBBO)
We bring these names together into a practical map: who borrows, who sets the price of money, who enforces the rules, who counts, and who facilitates trading.

Educational content only. Not investment advice.

[MochaLearn](https://mochatrade.com/learn) is a free A to Z course on understanding and trading US stocks and commodities, built for Indian traders.

Last updated 9 October 2026

## Key takeaways

1. Each institution answers a problem the market once had: the Treasury borrows, the Fed sets the price of money, the SEC, CFTC and FINRA enforce the rules, the BLS, BEA and Census Bureau count, and the exchanges and market makers facilitate trading.
2. The NYSE grew out of trading in government bonds; the Federal Reserve and the FOMC grew out of bank runs.
3. The Dow, the S&P 500, the Nasdaq 100, the Russell 2000 and the VIX each measure a different slice of the market.
4. The NBBO is the best bid and the best offer across every exchange, consolidated into one quote.

## Terms in this lecture

- 10-K and 10-Q: https://mochatrade.com/learn/glossary/10-k-and-10-q
- Bid-ask spread: https://mochatrade.com/learn/glossary/bid-ask-spread
- Blue chip US stocks: https://mochatrade.com/learn/glossary/blue-chip-us-stocks
- Cboe: https://mochatrade.com/learn/glossary/cboe
- CFTC: https://mochatrade.com/learn/glossary/cftc
- CME Group: https://mochatrade.com/learn/glossary/cme-group
- Commitments of Traders (COT) report: https://mochatrade.com/learn/glossary/commitments-of-traders-report
- Dark pool: https://mochatrade.com/learn/glossary/dark-pool
- Day trading and the PDT rule: https://mochatrade.com/learn/glossary/day-trading-and-the-pdt-rule
- Debt ceiling: https://mochatrade.com/learn/glossary/debt-ceiling
- Designated market maker: https://mochatrade.com/learn/glossary/designated-market-maker
- Dow Jones Industrial Average: https://mochatrade.com/learn/glossary/dow-jones-industrial-average
- Federal Reserve: https://mochatrade.com/learn/glossary/federal-reserve
- FINRA: https://mochatrade.com/learn/glossary/finra
- GDP: https://mochatrade.com/learn/glossary/gdp
- Index futures (E-mini S&P 500): https://mochatrade.com/learn/glossary/index-futures
- Market breadth: https://mochatrade.com/learn/glossary/market-breadth
- Market cap categories (mega/large/mid/small): https://mochatrade.com/learn/glossary/market-cap-categories
- Market capitalization: https://mochatrade.com/learn/glossary/market-capitalization
- Market maker: https://mochatrade.com/learn/glossary/market-maker
- NASDAQ: https://mochatrade.com/learn/glossary/nasdaq
- Nasdaq 100: https://mochatrade.com/learn/glossary/nasdaq-100
- NBBO: https://mochatrade.com/learn/glossary/nbbo
- NYSE: https://mochatrade.com/learn/glossary/nyse
- NYSE Arca: https://mochatrade.com/learn/glossary/nyse-arca
- Options contract: https://mochatrade.com/learn/glossary/options-contract
- PCE: https://mochatrade.com/learn/glossary/pce
- Retail sales: https://mochatrade.com/learn/glossary/retail-sales
- SEC: https://mochatrade.com/learn/glossary/sec
- Stock split (US): https://mochatrade.com/learn/glossary/stock-split
- US ETF: https://mochatrade.com/learn/glossary/us-etf
- US Treasury: https://mochatrade.com/learn/glossary/us-treasury
- Volatility / VIX: https://mochatrade.com/learn/glossary/volatility-vix