2nd October 2019

quora
12

How does the stock market functions?

A stock exchange is a marketplace for buyers and sellers of stocks. A stock exchange is a marketplace, where stocks of several listed companies are traded. Think of a stock exchange like any other market, where buyers and sellers meet, and carry out transactions at a price agreeable to both the parties.

Also, why the stock market is important?

Stock market is an important part of the economy of a country. To issue shares for the investors to invest in the stocks a company needs to get listed to a stocks exchange and through the primary market of the stock exchange they can issue the shares and get the funds for business requirements.

Why do we need the stock market?

The benefit to companies from having their shares publicly traded is that they can issue new shares to raise capital for future investment. And share prices are determined by the balance of demand and supply in the market at any point in time. If there are more sellers than buyers, prices will fall and vice versa.

What is the use of stock market?

A stock market is where investors meet to buy and sell shares. Markets used to be literal places—they were trading floors in New York, London, Tokyo and Frankfurt where prices for stocks were set in an ongoing live auction. Now most bids to buy and sell stocks are made electronically.
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