Stock market: How does the stock market work?
When it comes to the working of the stock market, the concept behind it is very simple. The stocks market is a platform that operates much like an auction house. The stock market is a platform that allows buyers and sellers worldwide to negotiate prices and make a trade. Therefore, the stock market works mainly through a network of exchanges. Some of the popular stock exchange platforms that might have heard of are the New York Stock Exchange and the Nasdaq. Companies' shares are listed on the stock market on an exchange through a process called an IPO or initial public offering. In the stock market, the investors are the ones that buy these listed shares of stock. When the investors buy the shares, it allows the companies to raise money to grow their business. Once the company has been raised, money has successfully grown its business; the investors can then buy and sell the stocks among themselves. The stock exchange is the one that tracks the demand and supply of ea...