How does the stock market work?

Question

How does the stock market work?

Answer 1

Companies go public by offering a specific number of shares in their company to the public through the stock exchange. Investors then can use the stock exchange to buy and sell stocks of companies that they are interested in. The market determines the value of the stock based on the what a buyer is willing to pay.

Answer 2

Its actually very simple, stock markets are where large corporations issue shares (pieces of ownership) in exchange for money needed to finance growth. These stocks once issued trade between buyers and sellers every day. Their prices are discovered in a free market auction between buyers and sellers. The current price of a stock is the price at which buyers equal the number of sellers. If some new comes out the price will shift lower or higher to reflect the opinions of the buyers and sellers and establisha new equilibrium.

Answer 3

The rich steal from the poor.

Answer 4

You become a part owner in a company when you buy a share of stock.  If a company like McDonalds has one million shares and you buy one share you own one millionth of the company.  People buy shares in good companies and sell them when the share price goes up to make money.  You can own the share for many years and sometimes make more money when you sell.

Answer 5

It's would be very difficult to explain the workings of the stock market but here are some website for you

http://moneycentral.msn.com/home.asp

http://finance.yahoo.com/

http://www.investors.com/?tn=top

http://investorshub.advfn.com/default.as...

http://www.thestreet.com

http://www.brokerage101.com/

http://www.1source4stocks.com/

http://www.decisionpoint.com/TAcourse/TA...

http://stockcharts.com/

http://www.grahaminvestor.com/

http://www.thestreet.com/

good luck