LITERALLY how does the stock market work?
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So i've read all about the stock market and stuff but how does it actually work? Im not meaning how stocks and stuff work, but rather, what literally makes the stock market work? Theres buyers and sellers but what tells the system to change the price based on quantity/demand? Is there a huge computer network which runs off complicated algorithms? You see brokers around all their computers with numbers and data all over the show but where is the data coming from? What system does it go through? You probably catch my drift by now so someone please explain it :P Thanks
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Answer:
1. Stock Exchanges have a network of brokers/sub-brokers throughout the country. 2. Customers who want to deal in shares open Trading Account with the brokers. 3. The customers place orders with the Stock Exchange on their cumputers through the website of their brokers. 4. The customers indicate in their orders the number of shares and price at which they want to buy/sell. 5. This information is stored on the central computer of the Stock Exchange. 6. The computer of stock exchange matches the buy and sell orders of customers and finalises the deals. .
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