Stock market

A stock market is an institution where people and computers buy and sell shares of companies.

A 'ticker': dealers' tool for watching market changes

Shares

Shares are small pieces of a company. Shares can be bought by humans, companies, and mutual funds. When buying shares in a company, the buyer owns a small part of that company. The price of a share can be based on many different things. The main thing that affects the price is the balance between supply and demand. If many buyers want to buy a stock the price goes up. If there are more sellers than buyers, the price goes down.

Stock brokers

Some buyers trade shares in stocks through a stockbroker. A stockbroker is a person who buys or sells stocks for their customers. A stockbroker can also help customers make choices in stocks. Their advice is based on public information about the companies.

How the Share Market Works

The interplay of buyers and sellers drives the operation of the stock market. Orders to purchase or sell shares can be placed through brokers or internet trading platforms. These orders are matched on stock exchanges, where supply and demand dynamics determine the price. The stock market works on the supply and demand concept, with prices moving based on a variety of factors such as corporate performance, economic conditions, and investor mood.

Stock markets in the world

• NYSE (New York Stock Exchange) - USA
• NASDAQ (stock market for mainly technology shares) - USA
• London Stock Exchange - UK

Cultural changes in the stock market

Trading stocks online has become more popular. Stocks can be traded online. There is a fee or commission each time a position is opened.