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The stock market [link widoczny dla zalogowanych] has puzzled lots of people over the years using its behavior. Not many so called analysts have been able to make predictions which are always right and that is because price movement of stocks are [link widoczny dla zalogowanych] determined by a variety of factors such as political developments, economic news, company performance of the stock, influence of foreign institutional buying and so forth.
In short, it is only another market that behaves according to [link widoczny dla zalogowanych] the demand and supply existing in a particular point in time. It can be compared to a big super mall where individuals are either buying or selling stocks. For every [link widoczny dla zalogowanych] buyer, there's a seller and the other way around.
This transaction of buying and selling of stocks is facilitated with a stock exchange. The New York Stock Exchange is one [link widoczny dla zalogowanych] such example. As compared to earlier times, whenever you [link widoczny dla zalogowanych] had to be physically present at the exchange to trade stocks, modern trading is done through online trading portals that are [link widoczny dla zalogowanych] owned by brokers and several people have had the opportunity [link widoczny dla zalogowanych] to do so in the comfort of the homes.
Let's explore one example of what sort of stock trade happens.
You first need to open a trading account with a broker and also a [link widoczny dla zalogowanych] deposit total with which you can trade in a specific quantity of shares with [link widoczny dla zalogowanych] respect to [link widoczny dla zalogowanych] the price of the stock you wish to trade in. After this you place an order to buy a particular stock in a particular price and also the quantity could be say 100. The trading platform will communicate to any or all networks that a person wants to buy 100 shares of a particular company and this immediately leads to an engaged seller of that stock to make available 100 shares at the price you desired and the transaction is done online. Hundred shares get transferred from the seller's account to your account. Several such trades keep happening with the working hours of the stock exchange [link widoczny dla zalogowanych] on [link widoczny dla zalogowanych] a daily basis and the relevant brokerage fee; taxes towards the government and so on are all adjusted online within the trade that is executed.
Now the decision of what stock to buy is influenced by valuation of the stock [link widoczny dla zalogowanych] and that is determined by the profits the company is generating, the future potential from the company or the industry and also the time the buyer is willing to remain invested in that stock. Those are elements that merit discussion [link widoczny dla zalogowanych] separately.