How the Stock Market Actually Works

Understand the mechanics of buying and selling stocks, how prices are set, and the role of exchanges, market makers, and order books.

Key Takeaways

• 1.Stocks represent ownership in a company
• 2.Price is determined by supply and demand in an order book
• 3.Exchanges like NYSE and NASDAQ are regulated marketplaces
• 4.Market makers provide liquidity by quoting bid and ask prices