How does the stock market work?

By MindStick

Investors Purchase Shares: Investors buy these shares, becoming partial owners of the company.

Stock Exchanges: Stocks are traded on stock exchanges like NYSE or NASDAQ, providing a platform for buying and selling.

Supply and Demand: Stock prices fluctuate based on supply and demand dynamics. Positive news or performance usually raises demand, increasing prices.

Brokers and Online Platforms: Investors trade stocks through brokers or online platforms, facilitating transactions.

Indices Reflect Market Performance: Indices like the S&P 500 or Dow Jones track the overall market's performance.

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