Friday, April 4, 2014

What is the function of the stock market?

What is the function of the stock market?
When a company with a proven track record needs money for investment they will offer shares at price on the stock market. As the company grows, more shares are offered and the price fluctuates based on what the people buying the stock think the company is going to do...grow or slow down. The stock market is basically an auction house selling (trading) these offerings called stocks.

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