How does the stock market work?

Stock market

The stock exchange or stock market, a market that collects, issues, and trades shares, bonds and other securities, allowing companies to support their capital by giving investors part of their ownership.

The stock exchange is defined as the markets that include the presence of exchanges of securities within a specific region or country, and depends on the existence of a value or price of the shares traded in it.
Another definition of the stock exchange is that it is the activity that depends on buying and selling shares within a specific general level for their prices on each day.

How does the stock market work?

Work is implemented in the stock exchange (securities) by dividing its market into two types; They are the main market and the secondary market. The main market sells new securities for the first time by applying a set of subscription offers, and founders often get most of the securities from investors, while in the secondary market all subsequent operations of trading are carried out, and many investors participate in this market; Either by individuals or institutions.

The stock exchange usually works to achieve private trading in stock companies through a group of exchanges that bring together sellers and buyers; The traded shares are included within the deals for trading, and it is possible to work on their implementation in an electronic way, and it includes the presence of two operations: buying and selling shares and all securities.

Buying securities (shares) whose prices rise or fall, and this is one of the encouraging reasons for many investors to buy a group of them in most professional sectors, and this thing is called diversification, and often the goal of buying diversified shares is to get money by dealing with shares Companies that are expected to make good profits, which leads to an increase in the price of their shares.

The sale of securities (shares) is a transaction between the seller and the buyer; When the share price drops, sellers seek to sell it, and buyers are willing to buy it, and often every buyer starts buying the offered shares when it reaches a specific point of the price.

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