Just What Is The Stock Market?
The stock market is a place where people agree to exchange a piece of ownership in a company for money. If you were to do this with just a friend or relative there would be this huge negotiation process where you would ask and they would counter offer. However, in the stock market millions of shares of any given company can be traded on the same day. For each trade there has to be one buyer and one seller, so with this many trades going on there is always someone to buy or sell a share to you or from you as long as you aren’t far from the market price. In fact this someone is called the market maker. Market maker’s are make a little money on every trade, but they must accept anyone who is buying or selling within their range. That’s all for this stock market 101 lesson.
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