How do stock markets work?

Understanding Stock Markets

A stock market is a marketplace where buyers and sellers trade shares of publicly listed companies. When you buy a stock, you're purchasing a small ownership stake in that company.

In Trading Game, you can practice these concepts in a simulator using real market prices — without using real money or connecting to a broker.

Key Concepts

• Stocks (Shares) - Units of ownership in a company
• Exchange - Where stocks are bought and sold (NYSE, NASDAQ)
• Bid Price - What buyers are willing to pay
• Ask Price - What sellers are asking for
• Spread - Difference between bid and ask prices

How Prices Move

Stock prices change based on supply and demand:

• More buyers than sellers = price goes up
• More sellers than buyers = price goes down
• News, earnings, and economic events affect demand

Why Companies Issue Stock

Companies sell shares to raise money for growth, research, or paying off debt. In return, shareholders may receive dividends and benefit from price appreciation.