How stock trading works

How share trading works - They don't have to stop a stock from rising or falling though, which is why most traders and investors still choose to trade stocks with lots of volume, and thus not rely on these "market makers," which are now mostly electronic and automated. The amount of the company that is sold is only a fraction of its total ownership, so the price set for the stock (as determined by open bidding once it goes public) determines the value of the entire company by extension. If the system works, and it does most of the time, all of this will be hidden from you, however, if something goes wrong it's important to have an idea of what's going on behind the scenes. Articles in this seriestrading basicshow stock prices are setbuying high, selling lowunderstanding stock quotesunderstanding bid & ask pricesunderstanding stock ordersusing trailing stops to protect stock profitsmarket specialists make nyse workmarket makers keep nasdaq hummingdon't be a victim of trading scams.

Trading 101: How Does the Stock Market Work?

Trading 101: How Does the Stock Market Work? Thanks to a subscriber on YouTube, I was given the suggestion to dig deep into ...