How the Stock Market Works

There are many people investing in the stock market. Many of us rich in any type of retirement account can count as market participants as a whole. But have you stopped and wondering how the stock market works? Have you ever attended an auction? If you have, then you may be able to relate to the day-to-day operations of the stock market, because basically this is the way the listed company owns the stock auction

There is an auctioneer in the auction. But on the New York Stock Exchange (the world's largest stock market) and the American Stock Exchange, he is known as a market maker. The market maker tries to match buyers and sellers as buyers. There is no price set for the stock. Institutions and dealers to buy and sell, the price set by the market makers. Prices will fluctuate within one day depending on supply and demand. Stocks have no fixed price. Bidders buy expectations, prices will go higher, sellers sell, because they think the price will go down.

Many people see the NYSE-listed news or CNN in a news story about the trading day. Perhaps you have seen the bell sound, announced the beginning or end of the trading day. It's really a sight to watch the floor traders buy and sell their stocks of fear of loss of sentiment and the potential profit of greed. Actual participants see the stock market as completely different from most investors

NAZDAQ is completely different from the New York and American stock exchanges. NAZDAQ Full electronic operation. Transactions on NAZDAQ are conducted through a large computerized network. It is still an auction, but the buyer and the seller through the network to tender and provide stock. If you can imagine a piece of paper from the middle into a column, one side of the bidder, the other side is the seller lists their asking price. In each respect, they are placed at different levels depending on their bid or asking price. The highest bid price gets the buyer's top position in the column's honor, the lowest selling price in the seller gets the same. This is basically a description of a second-tier quotation system in which active traders pay close attention when they do day-to-day transactions.

For many of us, it's all behind the scenes. For more and more people, this has become a field of research, as the Internet has allowed them to visit the daily auction known as the stock market. The number of online traders has been growing steadily since the nineteen ninties, and some have profited generously and continue to do so. Others consider themselves lucky, all of which are behind the scenes and with their mutual funds. No matter where you find yourself in the camp, the goal is the same … earning a profit in the world's greatest auctions