How does a stock market work?

Individual and institutional investors come together on stock exchanges to buy and sell shares in a public venue. Share prices are set by supply and demand as buyers and sellers place orders. How Do Stocks Work?

How does a stock exchange work?

When you buy a stock, here's the simplified version of how it works: You tell your broker (or input electronically) what stock you want to buy and how many shares you want. Your broker relays your order to the exchange. A market maker sells you shares at the current market price. The shares are then delivered to your account.

What is a stock market?

The stock market is an umbrella term for all of the stock exchanges in a country or region. It includes venues where companies can sell shares of their stock to the public, and investors can buy and sell those shares among one another after they've been issued.