Welcome to the exciting world of the stock market! If you've ever wondered how the stock exchange works, you're in the right place. In this article, we will delve into the basics of the stock market and provide you with a beginner's guide to understanding how it all works.
Understanding the Stock MarketThe stock market is like a giant marketplace where buyers and sellers come together to trade shares of publicly listed companies. It is where investors can buy and sell stocks, bonds, and other financial instruments. The stock exchange, such as the New York Stock Exchange or NASDAQ, serves as the platform for these transactions.
When a company decides to go public, it issues shares of its stock, which represent ownership in the company. These shares are then made available for purchase on the stock exchange. Investors who believe in the company's potential growth may buy these shares, while others who feel uncertain about its prospects may sell their existi…