The basic idea of how the stock market works is straightforward. It allows buyers and sellers to discuss pricing and conduct transactions.

A network of exchanges, such as the New York Stock Exchange and the Nasdaq, operate the stock market. The stock of a company is listed on an exchange through a procedure known as an initial public offering, or IPO. Investors purchase these shares, allowing the firm to raise capital to expand its activities. These stocks may then be traded among investors, while the exchange monitors supply and demand for each stock.

The stock market functions through the buying and selling of stocks. In order for a company to get shares of their stock out into the market, they need to hire an investment banker to represent them. The investment bank will then go through a process called going public. This process involves having a prospectus drafted up and presenting it to potential buyers. Usually, companies use this process when they are either looking to raise capital or generate a return on their previous investments.

In the stock market there is the process of buying and selling stocks. The market is made up of buyers and sellers, with the former being mostly the general public and the latter major companies and organisations who sell stocks and shares.