What Is the Stock Market?
The term stock market means where various exchanges take place in which the shares of public companies are bought and sold out. Both the stock market and the stock exchange are frequently used for exchangeability. Here traders buy or sell the shares on different platforms which are also a part of a stock market.
How Does The Stock Market Work
The Market provides a regulated and secure environment where market candidates can transact in shares, options, and also in other financial instruments, with zero going risk. They act as two types primary and secondary markets. In the primary market, the market enables the companies to issue and sell their shares in the public by the process of an IPO (Initial public offering) for the first time. This activity helps to raise funds from investors by companies.
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Alternate Trading System
The alternative trading system refers to the venue for tying up the large buy and sell agreements and is not controlled like the exchange. Many cryptocurrency and dark pools are called private exchanges for currency trading and securities and they operate under private groups.
Functions of a Stock Market: The stock market makes sure price transparency, liquidity, fair dealings, and price discovery in the trading activities. The market promises all the attentive market participants to have access to all the material for all buy and sell orders, thereby serving in honest and clear pricing and securities. The market also makes sure that there should be suitable buy and sell orders.
Who Acts As A Helper in Investor Trade on The Stock Market?
All the different types of stockbrokers act as a mediator between the investor and stock exchanges by buying and selling stock, professional portfolio managers invest portfolios for clients. Investment bankers represent companies in several dimensions, like private companies that want to go public by IPO or the companies that are involved in unresolved mergers and purchases.
