How does the stock market work?
By The News Voice
Before learning how Stock Market works/operates
what does the stock market mean?
The stock market is a designated market where the exchange of activities (buying & selling) and the issuance of shares (of publicly held companies) happens.
So, How does The Stock Market work?
First, stock markets provide a regulated and secured environment for market participants to transact in shares and exchange securities at zero- to low-operational risk.
Participants in the stock market range from individuals (retail investors) to big institutional investors (insurance companies, fund managers, pension funds, and banks)
While it could be a bit complex, few important steps explain how the stock market works.
In the stock market, buyers place bids and sellers offer prices (asking price) for shares of stock.
When the bid eventually equals the ask, a trade occurs.
In the stock market, the term “bid-ask spread” is referred to as the difference between what buyers pay and sellers accept. Also, a smaller bid-ask spread could show more liquid security.
Now, you know what is Stock Market.
So go on, Invest and Earn!