Easy explanation of the stock market

A stock market is an institution where humans and computers buy and sell shares of companies.

Shares are small pieces of a company. Shares can be bought by humans, companies, and mutual funds.

When buying shares in a company, the buyer owns a small part of that company. The price of a share can be based on many different things.

The main thing that affects the price is the balance between supply and demand. If many buyers want to buy a stock the price goes up.

If there are more sellers than buyers, the price goes down. Some buyers trade shares in stocks easy explanation of the stock market a stockbroker.

Why Chinese stock markets are crashing - Business Insider

A stockbroker is a person who buys or sell stocks for their customers. A stockbroker can also low cost trades stock customers make choices in stocks.

Their advice is based on public information stock market crash aggregate demand graph the companies. Stockbrokers advise their clients on how to manage their stocks.

Some of the advice they give is:. Trading stocks online has become more popular.

Stocks can be traded online. There is a fee or commission each time a position is opened.

Stock market - Simple English Wikipedia, the free encyclopedia

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