T
CHAPTER 19:
How Does The Stock Market Work?
he stock market is not like your neighborhood grocery store: you
can only buy and sell through licensed brokers who make trades
on major indexes like NASDAQ and S&P 100. This is where
investors meet up to buy and sell stocks or other financial investments like
bonds. The stock market is
made up of so many exchanges, like the
NASDAQ or the New York Exchange. These
exchanges are not open all
through the day. Most exchanges like the NASDAQ and NYSE are open
from 9:30 am to 4 pm. EST. Although premarket and trading after closing
time
now exist, not all brokers do this.
Companies list their stocks on an exchange in a bid to raise money for their
business, and investors buy those shares. In addition to this, investors can
trade shares among themselves, and the exchange keeps track of the rate of
supply and demand of each listed stock. The rate of supply and demand for
stocks determines the price. If there's a high demand for a particular stock,
its price tends to rise. On the other hand, the
price of a stock goes down
when there's less demand for it. The stock market computer algorithm
handles these varying fluctuations in prices.
Do'stlaringiz bilan baham: