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How it works: the stock market
How it works: the stock market

Learn how the Stock Market works, understand the basics of buying and selling stocks, and discover when it's open for business.

Updated over 5 months ago

The stock market operates like a large store where you can buy and sell shares of companies, big, medium, and small.

Why do companies sell shares?

When companies want to raise money, they can sell small parts of their company, known as shares or stocks. The price of these shares goes up or down depending on demand. If a company is very popular, its shares will be more expensive.

Main stock markets in the U.S.:

In the United States, there are two main stock market in the US: the NYSE and the NASDAQ. The NYSE is the largest and oldest, and the NASDAQ is mainly for technology companies and conducts electronic transactions.

Why do companies go public?

Companies go public by listing on the stock market to raise funds and gain visibility. However, this comes with rules and regulations, as all financial information becomes public.

When does the Stock Market operate?

The stock market operates on weekdays, from 9:30 am to 4:30 pm, New York time. Check the holiday calendar for exceptions.

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