The stock market is an organised body in which brokers trade the stock of public companies that go public through initial public offerings (IPOs). Market stock prices reflect demand and supply, and traders attempt to forecast stock behaviour.
A Well-Organised Body
A stock exchange is a well-organized organisation with a management committee and rules that govern how the exchange operates. Traders on the exchange are bound by the exchange's rules, which are enforced by the management committee. A stock market used to be a physical location where traders met face to face to make deals, but most trades now take place electronically.
Publick company stock
Stock markets rely heavily on public companies. Public companies have stock that can be bought and sold on a public stock exchange. A stock must first be listed on the exchange before it can be sold. A public company is required to disclose financial and business information that could affect stock value in order to protect its investors.
Using Brokers to Trade
Trading on a stock exchange is limited to stock brokers and traders who are exchange members.
Individual investors must have a brokerage account in order to trade. Many people receive brokerage services as part of an employer-sponsored retirement investment fund. Individual accounts are required for individuals who want to trade independently.
Going public with an IPO
Initial public offerings (IPOs) are the process by which a company's stock is made available for public sale on a stock exchange. An IPO occurs in the primary market, with follow-on trading between investors taking place in the secondary market. An initial public offering (IPO) allows a company to raise capital for future growth by selling shares to the general public.
Prices are influenced by supply and demand.
The price of a company's stock reflects supply and demand for the stock and is often unrelated to the success of the company. The stock of a company may be desirable for a variety of reasons, ranging from the strength of an industry sector to the popularity of a brand.

Stock markets have several key characteristics that define their structure and behaviour. They provide a platform where investors buy and sell shares of publicly traded companies. Liquidity is a major feature, allowing assets to be easily converted into cash. Stock markets are driven by supply and demand, influenced by economic data, corporate performance, and investor sentiment. They are regulated by authorities to ensure transparency, fairness, and protection for investors. Price discovery is continuous, reflecting real-time valuations based on available information. Stock markets also exhibit volatility, with prices fluctuating due to internal and external factors. Accessibility has improved with online trading platforms, enabling global participation. Lastly, stock markets play a vital role in capital formation, helping companies raise funds for growth.