Can anyone give a basic description of how the stock market works?

Question

I just want to have an idea,

Answer 1

It's a interaction of buyers and sellers, if more people wants to sell, price goes down. More buyers-price goes up.

Answer 2

I suggest you to buy "Wall Street" on DVD.

Answer 3

It serves two main purposes. Primary market and secondary market. Primary for providing the framework for companies wishing to raise finance. Seconadary, providing the framework to enable the trading & settlement of company shares.

Answer 4

It's just like anything you got a buyer and a seller. Its just a place to by and sell stock's, it's just like eBay,when the demand of the stock goes up the price of the stock goes up,when the demand of a stock does down the price of the stock goes down.

Answer 5

It works like an auction where sellers put up asking prices and buyers put up bidding prices.  And when the asking and the bidding prices coincide.  Then the sale of stocks takes place.

It's mostly computerized now.  And the sale happens automatically when the asking and the bidding prices coincide.

It's also possible to buy or sell stocks at the market price.  And the market price is the price at which the stock was sold last time.