Stock trading are mostly done by exchanges. Buyers and sellers meet on one place and then decide to fix the price. This is one type of exchange and other type of exchange are done through electronic. It is virtual type with network of computers.
In brief you could say that stock market links buyers and sellers. The purpose of stock market is to reduce risk of investing and give securities between buyers and sellers. Just in one word it can be said as a Super-sophisticated Farmer Market.
It is essential to know about primary and secondary market before stepping on to trade in details. Concerning primary market you have IPO ( Initial Public Offering ) which give security but regarding secondary market, issuing company doesn't involve in it. They trade with already issued securities.
In brief you could say that stock market links buyers and sellers. The purpose of stock market is to reduce risk of investing and give securities between buyers and sellers. Just in one word it can be said as a Super-sophisticated Farmer Market.
It is essential to know about primary and secondary market before stepping on to trade in details. Concerning primary market you have IPO ( Initial Public Offering ) which give security but regarding secondary market, issuing company doesn't involve in it. They trade with already issued securities.
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