{"id":2436,"date":"2021-07-28T11:55:00","date_gmt":"2023-03-31T20:19:26","guid":{"rendered":""},"modified":"2023-12-20T08:17:37","modified_gmt":"2023-12-20T08:17:37","slug":"how-does-the-stock-market-work-detailed-guide-for-beginners","status":"publish","type":"post","link":"https:\/\/blog.zulutrade.com\/fr\/how-does-the-stock-market-work-detailed-guide-for-beginners\/","title":{"rendered":"How Does the Stock Market Work? Detailed Guide for Beginners"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Want to know how stocks work?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Oftentimes, there can be a lot of jargon associated with stock trading that can make it an intimidating process to start.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You&rsquo;ll need to put in the time to <\/span><a href=\"\/blog\/post\/best-day-trading-stocks\"><span style=\"font-weight: 400;\">research stock<\/span><\/a><span style=\"font-weight: 400;\"> and the markets you invest in, and being here is the first step.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We&rsquo;re going to cover <\/span><strong>all the information you need to know<\/strong><span style=\"font-weight: 400;\"> about how the stock market works, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Definitions of key terminology<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Details about where stock is traded and where its value comes from<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How you can <\/span><a href=\"\/create-account\"><span style=\"font-weight: 400;\">get involved in trading stock<\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">&nbsp;Let&rsquo;s get right to it. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Table of Contents<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">What is a Stock? A Simple Definition of &lsquo;Stock&rsquo;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How Does the Stock Market Work?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Types of Stocks<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How Are Stock Prices Set?<\/span><\/p>\n<p>What is a Stock Exchange?<\/p>\n<p><span style=\"font-weight: 400;\">How Do You Invest in the Stock Market?<\/span><\/p>\n<p><\/p>\n<h2><span style=\"font-weight: 400;\">What is a Stock? A Simple Definition of &lsquo;Stock&rsquo;<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A stock is a security that represents your <\/span><strong>ownership stake in a company<\/strong><span style=\"font-weight: 400;\">, giving you the right to have a claim on the assets and earnings of the business.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you own stock in public companies you may be able to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><strong>Get paid a dividend<\/strong><span style=\"font-weight: 400;\">, or share of the profit, from the company depending on when you bought your stock<\/span><\/li>\n<li style=\"font-weight: 400;\"><strong>Have a right to vote<\/strong><span style=\"font-weight: 400;\"> on the direction of the company at the annual general meeting (AGM), depending on the type of stock you own<\/span><\/li>\n<li style=\"font-weight: 400;\"><strong>Receive a share of liquidated assets<\/strong><span style=\"font-weight: 400;\"> if the company closes&nbsp;<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Stock_Definition.png\" alt=\"\" width=\"600\" height=\"400\" title=\"\"><\/span><\/p>\n<p><em><span style=\"font-weight: 400;\">Photo by<\/span><a href=\"https:\/\/unsplash.com\/@homajob?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Scott Graham<\/span><\/a><span style=\"font-weight: 400;\"> on<\/span><a href=\"https:\/\/unsplash.com\/s\/photos\/meeting?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Unsplash<\/span><\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">To own stocks, you <\/span><a href=\"https:\/\/aaafx.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">need a brokerage firm<\/span><\/a><span style=\"font-weight: 400;\"> who will be the \u00ab\u00a0middleman\u00a0\u00bb and purchase the stock on your behalf &#8211; we&rsquo;ll get into more details about how a brokerage helps you soon.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You&rsquo;ve likely heard the phrase \u00ab\u00a0stocks and shares\u00a0\u00bb and may even hear some people use the words interchangeably, but are they the same thing?<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>What is the difference between a stock and a share?<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The main difference between stocks and shares is that <\/span><strong>stock is a collective term<\/strong><span style=\"font-weight: 400;\"> for each piece of a company you own, whereas a <\/span><strong>share is each piece of each company<\/strong><span style=\"font-weight: 400;\"> you own.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think of it like talking about the suit you just bought.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You would tell your friends you just bought a new suit for work, which is a collection of items like the blazer, pants, waistcoat, tie, etc.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The suit is stock &#8211; a collection of items that comes together to be known as one word.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Each item we listed is a share; the basic items that make up the collective.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you were to say to your friend, \u00ab\u00a0I own stock in Apple,\u00a0\u00bb this means that you own more than one unit, or certificate, in Apple.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if you instead say, \u00ab\u00a0I own a share of Apple,\u00a0\u00bb you&rsquo;d be telling them you have exactly one piece of Apple; \u00ab\u00a0I own shares in Apple,\u00a0\u00bb will also mean you own more than one share.&nbsp;&nbsp;<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Apple_Stock.png\" alt=\"\" width=\"600\" height=\"749\" title=\"\"><\/p>\n<p><em><span style=\"font-weight: 400;\">Photo by<\/span><a href=\"https:\/\/unsplash.com\/@anckor?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Julian O&rsquo;hayon<\/span><\/a><span style=\"font-weight: 400;\"> on<\/span><a href=\"https:\/\/unsplash.com\/s\/photos\/apple?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Unsplash<\/span><\/a><\/em><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Generally, you won&rsquo;t trip yourself up in a conversation about the stock market by using the words interchangeably, but it is worth being aware of the subtle difference.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now you know what stock is, it&rsquo;s time to find out where you go to buy some. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">How Does the Stock Market Work?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A stock market is a place where licensed people, or brokers, go to buy and sell stock in a company.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How does that stock get there and why do people want to own it?&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First, a company needs to be listed on a market like the New York Stock Exchange (NYSE), based on Wall Street, for people to be able to trade its shares.&nbsp;<\/span><\/p>\n<p><strong>A company will choose to list its shares to the public<\/strong><span style=\"font-weight: 400;\"> usually in order to raise cash to invest in the business activities and it&rsquo;s called an IPO, or initial public offering.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When this happens, the company sells off slices of the business so anyone is able to buy a piece and the company receives the money.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Facebook Inc., traded with the symbol FB on the Nasdaq exchange, had one of the largest IPOs in the last decade with an initial share price of $38, and <\/span><a href=\"https:\/\/www.history.com\/this-day-in-history\/facebook-raises-16-billion-in-largest-tech-ipo-in-u-s-history\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">$16 billion was raised<\/span><\/a><span style=\"font-weight: 400;\"> when it first sold stock on May 18, 2012.&nbsp;<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Facebook_Stock.png\" alt=\"\" width=\"600\" height=\"416\" title=\"\"><\/p>\n<p><em><span style=\"font-weight: 400;\">Photo by<\/span><a href=\"https:\/\/unsplash.com\/@solenfeyissa?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Solen Feyissa<\/span><\/a><span style=\"font-weight: 400;\"> on<\/span><a href=\"https:\/\/unsplash.com\/s\/photos\/facebook?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Unsplash<\/span><\/a><\/em><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">After the process of first selling off shares is complete &#8211; known as the <\/span><strong>primary market<\/strong><span style=\"font-weight: 400;\"> &#8211;&nbsp; traders and investors can buy and sell the stock between each other at whatever price they agree on &#8211; which is called the <\/span><strong>secondary market.<\/strong><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Important players in keeping a stock market functioning are market makers.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/www.nyse.com\/markets\/nyse\/trading-info\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">market maker<\/span><\/a><span style=\"font-weight: 400;\"> is usually a company, likely a brokerage firm, that will publicly list their buy and sell prices, connecting buyers and sellers by facilitating both sides of the transaction.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&rsquo;s unlikely individual investors will come into contact with a market maker directly, but it&rsquo;s useful to be aware they exist.&nbsp;&nbsp;<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Now we&rsquo;re going to look at the different types of stock you buy on the stock markets. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Types of Stocks<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are <\/span><strong>two main types of stock that investors buy<\/strong><span style=\"font-weight: 400;\">: common and preferred stock.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Both types of stock can be bought through a broker, although not all brokers will trade in preferred stock, so it&rsquo;s worth checking before you open an account if this is the type of stock you want.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Key differences between the two types of stock are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Voting rights<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Dividend payments<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Value and price<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How they are handled during a liquidation<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">We&rsquo;re going to look at each of these factors for both common and preferred shares before looking at a different type of stock called over-the-counter stock. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Type #1: Common stock<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Common shares are the type of stock that you&rsquo;ll probably think of when talking about Wall Street stock trading.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This stock gives the owner the right to vote on decisions in the business, for example at the AGM, when looking at who to appoint to the board of directors for example.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not all common stock will receive dividend payments &#8211; Tesla <\/span><a href=\"https:\/\/ir.tesla.com\/contact-us#item-does-tesla-pay-a-div-control\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">doesn&rsquo;t pay a dividend<\/span><\/a><span style=\"font-weight: 400;\"> on its common stock whilst <\/span><a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/aapl\/dividend-history\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Apple (AAPL) has paid a dividend<\/span><\/a><span style=\"font-weight: 400;\"> each quarter for many years.&nbsp;<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/APPL_Dividend_History.png\" alt=\"\" width=\"600\" height=\"676\" title=\"\"><\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400;\">Image Source: <\/span><a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/aapl\/dividend-history\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Nasdaq<\/span><\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">The price of common stock is more closely linked to the success of a company than preferred stock and may be more likely to perform better in the long run in terms of price increases.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a liquidation of a company &#8211; when it&rsquo;s closed down and all assets are sold off &#8211; owners of common stock are last in the queue to receive a payout.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n<h3><strong>Type #2: Preferred stock<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Few major stock companies offer preferred stock, but if you&rsquo;re interested in investing in this type of stock, <\/span><strong>there are exchange-traded funds (ETFs)<\/strong><span style=\"font-weight: 400;\"> such as the iShares Preferred and Income Securities ETF (PFF).&nbsp;<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Preferred_stock.png\" alt=\"\" width=\"601\" height=\"283\" title=\"\"><\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400;\">Image Source: <\/span><a href=\"https:\/\/finance.yahoo.com\/chart\/PFF#eyJpbnRlcnZhbCI6IndlZWsiLCJwZXJpb2RpY2l0eSI6MSwidGltZVVuaXQiOm51bGwsImNhbmRsZVdpZHRoIjo5LjY2MzQ2MTUzODQ2MTUzOCwiZmxpcHBlZCI6ZmFsc2UsInZvbHVtZVVuZGVybGF5Ijp0cnVlLCJhZGoiOnRydWUsImNyb3NzaGFpciI6dHJ1ZSwiY2hhcnRUeXBlIjoibGluZSIsImV4dGVuZGVkIjpmYWxzZSwibWFya2V0U2Vzc2lvbnMiOnt9LCJhZ2dyZWdhdGlvblR5cGUiOiJvaGxjIiwiY2hhcnRTY2FsZSI6ImxpbmVhciIsInBhbmVscyI6eyJjaGFydCI6eyJwZXJjZW50IjoxLCJkaXNwbGF5IjoiUEZGIiwiY2hhcnROYW1lIjoiY2hhcnQiLCJpbmRleCI6MCwieUF4aXMiOnsibmFtZSI6ImNoYXJ0IiwicG9zaXRpb24iOm51bGx9LCJ5YXhpc0xIUyI6W10sInlheGlzUkhTIjpbImNoYXJ0Iiwi4oCMdm9sIHVuZHLigIwiXX19LCJzZXRTcGFuIjp7Im11bHRpcGxpZXIiOjIsImJhc2UiOiJ5ZWFyIiwicGVyaW9kaWNpdHkiOnsicGVyaW9kIjoxLCJpbnRlcnZhbCI6IndlZWsifSwibWFpbnRhaW5QZXJpb2RpY2l0eSI6dHJ1ZSwiZm9yY2VMb2FkIjp0cnVlfSwibGluZVdpZHRoIjoyLCJzdHJpcGVkQmFja2dyb3VuZCI6dHJ1ZSwiZXZlbnRzIjp0cnVlLCJjb2xvciI6IiMwMDgxZjIiLCJzdHJpcGVkQmFja2dyb3VkIjp0cnVlLCJldmVudE1hcCI6eyJjb3Jwb3JhdGUiOnsiZGl2cyI6dHJ1ZSwic3BsaXRzIjp0cnVlfSwic2lnRGV2Ijp7fX0sInN5bWJvbHMiOlt7InN5bWJvbCI6IlBGRiIsInN5bWJvbE9iamVjdCI6eyJzeW1ib2wiOiJQRkYiLCJxdW90ZVR5cGUiOiJFVEYiLCJleGNoYW5nZVRpbWVab25lIjoiQW1lcmljYS9OZXdfWW9yayJ9LCJwZXJpb2RpY2l0eSI6MSwiaW50ZXJ2YWwiOiJ3ZWVrIiwidGltZVVuaXQiOm51bGwsInNldFNwYW4iOnsibXVsdGlwbGllciI6MiwiYmFzZSI6InllYXIiLCJwZXJpb2RpY2l0eSI6eyJwZXJpb2QiOjEsImludGVydmFsIjoid2VlayJ9LCJtYWludGFpblBlcmlvZGljaXR5Ijp0cnVlLCJmb3JjZUxvYWQiOnRydWV9fV0sImN1c3RvbVJhbmdlIjpudWxsLCJzdHVkaWVzIjp7IuKAjHZvbCB1bmRy4oCMIjp7InR5cGUiOiJ2b2wgdW5kciIsImlucHV0cyI6eyJpZCI6IuKAjHZvbCB1bmRy4oCMIiwiZGlzcGxheSI6IuKAjHZvbCB1bmRy4oCMIn0sIm91dHB1dHMiOnsiVXAgVm9sdW1lIjoiIzAwYjA2MSIsIkRvd24gVm9sdW1lIjoiI2ZmMzMzYSJ9LCJwYW5lbCI6ImNoYXJ0IiwicGFyYW1ldGVycyI6eyJ3aWR0aEZhY3RvciI6MC40NSwiY2hhcnROYW1lIjoiY2hhcnQiLCJwYW5lbE5hbWUiOiJjaGFydCJ9fX19\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Yahoo Finance<\/span><\/a><\/em><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Preferred stocks don&rsquo;t give the owners the right to vote on the company direction or any other business decision.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In terms of dividends, the returns on preferred stock tend to be higher and a company must pay dividends to preferred stock before they pay out anything to common stockholders.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The market price of a preferred share is linked to the price of the share rather than how the company is performing &#8211; in this way it&rsquo;s more like a bond that you invest in for the potential yield.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the company you own preferred shares in goes through liquidation, you&rsquo;ll get preference for a payout over common stock. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Type #3: Over-the-counter stock<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">When a stock isn&rsquo;t eligible to be traded on the main stock markets, it&rsquo;s traded over-the-counter and is known as an OTC security.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lots of OTC securities are penny stocks &#8211; stocks that trade for less than $5 each, <\/span><a href=\"https:\/\/corporatefinanceinstitute.com\/resources\/knowledge\/trading-investing\/penny-stock\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">according to a definition<\/span><\/a><span style=\"font-weight: 400;\"> by the US Securities and Exchange Commission (SEC).&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These stocks aren&rsquo;t as easy to trade since they&rsquo;re in smaller companies and the chances of finding a person to buy them from you are smaller &#8211; there aren&rsquo;t market makers for OTC securities like on the stock exchanges.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moving on to see how the price of a share is determined. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">How Are Stock Prices Set?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The basic premise for how a stock&rsquo;s price is set is the <\/span><strong>supply and demand in a market.<\/strong><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In simple terms, when there&rsquo;s high demand for a share of stock, the price will increase until the number of shares available matches the number of people happy to pay the price.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Conversely, when no one is interested to buy a share at its current price, that price will need to drop until people are willing to pay that sum of money.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The supply side of the market works in a similar way &#8211; when there&rsquo;s a high number of shares available to buy, the price will be low because there is no scarcity, whereas when there aren&rsquo;t many shares available, prices are high because the shares are hard to come by.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The price that someone is prepared to sell a share at is called the <\/span><strong>ask price<\/strong><span style=\"font-weight: 400;\">, whilst the price someone will buy at is the <\/span><strong>bid price<\/strong><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Each party &#8211; the buyer and seller &#8211; must be content with the price for the deal to go through.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is the general theory of why shares of stock are at a certain price, but there are a whole range of other factors that go into setting the price, so let&rsquo;s explore them. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Element #1: Company performance<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">How well a company is performing, in terms of revenue, profit, and dividends they pay, is one of the key factors in the price its shares will trade at.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How much a trader is prepared to pay for a share of a company is based on how much they think that company is worth.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A company that announces healthy profits will likely see a short-term increase in its stock price.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, when Google (GOOGL) announced better than expected profits for the <\/span><a href=\"https:\/\/abc.xyz\/investor\/static\/pdf\/2021Q1_alphabet_earnings_release.pdf?cache=0cd3d78\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">first quarter of 2021<\/span><\/a><span style=\"font-weight: 400;\">, their stock price jumped more than 4% from <\/span><a href=\"https:\/\/finance.yahoo.com\/chart\/GOOGL#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-\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">2,290 to 2,392<\/span><\/a><span style=\"font-weight: 400;\"> in the two days after the announcement.&nbsp;<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/GOOGL_Company_Performance.png\" alt=\"\" width=\"600\" height=\"272\" title=\"\"><\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400;\">Image Source: <\/span><a href=\"https:\/\/finance.yahoo.com\/chart\/GOOGL#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-\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Yahoo Finance<\/span><\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">In more detail, analysts will look at the price market investors are prepared to pay for a stock compared to the money the company earns, known as the price\/earnings ratio.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This ratio is calculated by looking at the market capitalization &#8211; the total value of all shares &#8211; and dividing it by the company&rsquo;s net revenue for the year.&nbsp;<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Other company news can also cause price movements and cause investors to buy or sell shares, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A change in leadership<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A new product launch<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Missed financial targets<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Changes in operations<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Moving on to the next thing that can determine the price of a stock. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Element #2: Market environment<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Much more outside the influence of a company are <\/span><strong>factors within the stock market that can affect the price of individual stocks<\/strong><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a bull market, prices of stocks rise further than you&rsquo;d expect based on company information, meaning prices of a share may be higher in a bull market than in normal times.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A recent example would be the increase in the Nasdaq between March 2020 and February 2021, where there was a more than 100% increase in the overall value of the market.&nbsp;<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/NASDAQ_Composite.png\" alt=\"\" width=\"599\" height=\"278\" title=\"\"><\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400;\">Image Source: <\/span><a href=\"https:\/\/finance.yahoo.com\/chart\/%5EIXIC#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-\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Yahoo Finance<\/span><\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">In contrast, a bear market is when the overall price of a stock in a financial market reduces for a long time, affecting the prices of most if not all of the stocks being traded.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&rsquo;s <\/span><strong>not always easy to know when the market is bullish or bearish<\/strong><span style=\"font-weight: 400;\"> so this factor may not be able to inform your investment decisions, but it&rsquo;s useful to understand how to read historic data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n<h3><strong>Element #3: Politics and macroeconomics<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Markets don&rsquo;t function in a vacuum &#8211; the political climate and what&rsquo;s going on in the wider economy will affect the price of an individual stock or the wider market.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The sudden drop in the market we can see in the previous screenshot was mirrored the world over as the recent coronavirus pandemic spread globally.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As you can see in the Dow Jones Industrial Average (DJIA) stock index&#8230;<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/DOW_JONES_INDUSTRIAL_AVERAGE.png\" alt=\"\" width=\"600\" height=\"271\" title=\"\"><\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400;\">Image Source: <\/span><a href=\"https:\/\/finance.yahoo.com\/chart\/%5EDJI#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--\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Yahoo Finance<\/span><\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">&hellip; and the London Stock Exchange&rsquo;s FTSE100 composite index:<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/FTSE_100.png\" alt=\"\" width=\"601\" height=\"276\" title=\"\"><\/p>\n<p><em><span style=\"font-weight: 400;\">Image Source: <\/span><a href=\"https:\/\/finance.yahoo.com\/chart\/%5EFTSE#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-\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Yahoo Finance<\/span><\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">There are many other wider political and economic factors that can influence the price of a stock market in general or cause a market crash, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A change to the central bank interest rates<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">An election<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Natural disasters<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Geopolitical conflicts<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Whilst other changes may only affect one or some stock prices, like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A change in government policy pivoting towards nuclear rather than oil power stations can affect oil company prices<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Closing a tax loophole aimed at taxing profits of global technology companies which may impact their share price<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Time for the final factor that can influence how much a share is worth.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Element #4: Professional opinion<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">At the start of a company&rsquo;s journey to becoming a publicly traded company, <\/span><strong>an investment bank is brought <\/strong><span style=\"font-weight: 400;\">in to assess the business.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As we discussed a little further up, when a company starts to sell shares to the public for the first time, we call this an IPO.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since the level of demand for a share isn&rsquo;t easy to know, other details are assessed such as the company&rsquo;s financial history and the trading performance of similar stocks.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For a new social network launching on a stock market, the investment bank would look more closely at Facebook and Twitter rather than American Airlines or Johnson &amp; Johnson, for example.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now we&rsquo;ve got a handle on how the prices are set, it&rsquo;s time to look at where you can trade stocks. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">What is a Stock Exchange?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A stock exchange is <\/span><strong>a place where buyers and sellers come together<\/strong><span style=\"font-weight: 400;\"> to trade the stock that they own.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Stock exchanges started in a way we&rsquo;d recognize today in the 17th century in port cities like London, Antwerp, and Amsterdam, with the latter being the <\/span><a href=\"https:\/\/www.worldsfirststockexchange.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">first in the world<\/span><\/a><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Back then, trading was done manually with face-to-face deals and stock exchanges worked along the same lines for hundreds of years, until computers and the internet happened.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whilst you may have the image of workers in brightly colored jackets making complex hand signals when you think of Wall Street or other stock exchanges, nearly all trading is now done through computers.&nbsp;<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Stock_Exchange.png\" alt=\"\" width=\"521\" height=\"781\" title=\"\"><\/p>\n<p><em><span style=\"font-weight: 400;\">Photo by<\/span><a href=\"https:\/\/unsplash.com\/@adamaszczos?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Adam Nowakowski<\/span><\/a><span style=\"font-weight: 400;\"> on<\/span><a href=\"https:\/\/unsplash.com\/s\/photos\/stock-market?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Unsplash<\/span><\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">There&rsquo;s a range of people who trade on a stock exchange, such as institutional investors, private equity firms, and hedge fund managers.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Individuals can also trade on stock exchanges to boost their retirement account for example, but you&rsquo;ll need to use a stockbroker to get access to the markets.&nbsp;&nbsp;<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">There is more than just shares of a company traded on a stock exchange, you can trade:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Commodities like oil, gold, and wheat<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Index funds such as the S&amp;P 500 index<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Mutual funds<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Government bonds<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Real estate mortgages and other loans<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Commercial paper<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Exchange-traded funds<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">From what an exchange is, we&rsquo;re going to look at the biggest ones in the world.&nbsp;<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Largest stock exchanges in the world<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">You&rsquo;ve probably heard of some or all of the largest stock exchanges in the world.&nbsp;&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Measured by the amount of capital invested in USD in the stock on the exchange, the top ten largest stock exchanges in the world, <\/span><a href=\"https:\/\/www.statista.com\/statistics\/270126\/largest-stock-exchange-operators-by-market-capitalization-of-listed-companies\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">as of February 2021<\/span><\/a><span style=\"font-weight: 400;\">, are:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.nyse.com\/market-cap\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">New York Stock Exchange<\/span><\/a><span style=\"font-weight: 400;\">, USA, $25.62 trillion<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Nasdaq, USA, $19.51 trillion<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Hong Kong Exchanges, Hong Kong, $6.76 trillion<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Shanghai Stock Exchange, China, $6.56 trillion<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Japan Exchange Group, Japan, $6.54 trillion<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Euronext, Europe, $5.08 trillion<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Shenzhen Stock Exchange, China, $4.83 trillion<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">LSE Group, UK and Italy, $3.83 trillion<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">TMX Group, Canada, $2.62 trillion<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">National Stock Exchange of India, India, $2.58 trillion<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Coming up is how it works when you start to invest in the stock market.&nbsp;<\/span><\/p>\n<\/p>\n<h2><span style=\"font-weight: 400;\">How Do You Invest in the Stock Market?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Now you know the answer to \u00ab\u00a0what is the stock market?\u00a0\u00bb, we&rsquo;re going to go through how you can <\/span><a href=\"https:\/\/zulutrade.com\/blog\/how-to-invest-in-stocks\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">start to invest in the stock market<\/span><\/a><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although you don&rsquo;t need to have a degree-level education to start stock investing, you do need to have:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Funds to invest<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Time to dedicate to learning about trading<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The ability to work with numbers when you test your investment strategies<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ability to control emotions<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Once you&rsquo;ve got the basics, here&rsquo;s a quick guide to how to invest in the stock market. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Step #1: Choose your investment instrument<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The first of many investment choices you have to make is where exactly you&rsquo;ll invest your money in the stock market.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can put your money into a range of investments depending on your risk tolerance, and whether you&rsquo;re looking for long- or short-term investment, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">ETFs<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Mutual funds<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Index funds<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Individual stocks<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">CFDs<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">All of which will mean you have your money invested in the price of stocks, either directly or indirectly.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some have more risk than others and you should do your research and due diligence before you choose to invest your money. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Step #2: Set a budget for your investment<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">It&rsquo;s important that you know<\/span><strong> how much money you have in your budget<\/strong><span style=\"font-weight: 400;\"> to invest.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Investment_Budget.png\" alt=\"\" width=\"600\" height=\"397\" title=\"\">&nbsp;<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\">Photo by<\/span><a href=\"https:\/\/unsplash.com\/@firmbee?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Firmbee.com<\/span><\/a><span style=\"font-weight: 400;\"> on<\/span><a href=\"https:\/\/unsplash.com\/s\/photos\/calculate-budget?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Unsplash<\/span><\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">There is always a chance that you&rsquo;ll lose money when you buy and sell securities, as we saw when we looked at the stock market crashes associated with the recent pandemic.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You should assess your affordability and how much risk you&rsquo;re prepared to take.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you&rsquo;re unsure about how much money to invest, you can seek investment advice from a financial advisor. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Step #3: Open an investment account<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">To start trading stocks and other instruments, you need to open a brokerage account with a stockbroker.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This will be the company that holds your money and buys and sells stock on your behalf.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are lots of online brokers you can sign up with and connect to an online trading platform such as <\/span><a href=\"http:\/\/zulutrade.com\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">ZuluTrade<\/span><\/a><span style=\"font-weight: 400;\">.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You&rsquo;ll need to provide some documentation before your accounts are open, too. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Step #4: Decide how you&rsquo;ll invest<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">You have two ways that you can invest in the equity markets:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Manual trading<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Copy Trading<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Manual trading requires a lot of work and research to be able to understand all the information that will affect the price of a stock that we looked at earlier.&nbsp;<\/span><\/p>\n<p><a href=\"\/copy-trading\"><span style=\"font-weight: 400;\">Copy Trading<\/span><\/a><span style=\"font-weight: 400;\">, on the other hand, is easier in that you choose which professional investor you wish to follow, decide how much of your money will copy their moves, and ZuluTrade will send the exact same signals to your brokerage account as the trader makes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n<h3><strong>Step #5: Buy your stocks and manage your portfolio<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The next step is to open your first position and execute your first trade.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using ZuluTrade, it&rsquo;s a simple process where you choose the asset you want to invest in, set options such as your stop-loss value, and then complete the purchase.&nbsp;<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Buy_Your_Stocks.png\" alt=\"\" width=\"600\" height=\"399\" title=\"\"><\/span><\/em><\/p>\n<p><em><span style=\"font-weight: 400;\">Photo by<\/span><a href=\"https:\/\/unsplash.com\/@mayofi?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">MayoFi<\/span><\/a><span style=\"font-weight: 400;\"> on<\/span><a href=\"https:\/\/unsplash.com\/s\/photos\/stock-market?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Unsplash<\/span><\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">You can <\/span><strong>use the data provided by ZuluTrade to monitor your positions<\/strong><span style=\"font-weight: 400;\">, such as the bid-ask spread and price volatility<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Choosing to Copy Trade and have your money <\/span><a href=\"\/traders\"><span style=\"font-weight: 400;\">follow the movement of professional Traders<\/span><\/a><span style=\"font-weight: 400;\"> will need less hands-on management, although it&rsquo;s worth checking on the market performance and your investments to ensure everything is how you expect.&nbsp;<\/span><\/p>\n<\/p>\n<p><span style=\"font-weight: 400;\">That&rsquo;s how you invest in stocks and securities, it&rsquo;s time to ring the bell and bring this to a close. <\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Now Over to You<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We&rsquo;re finished.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That&rsquo;s <\/span><strong>everything you need to know about how the stock market works.<\/strong><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We&rsquo;ve looked at what stocks are, how they get their price, and where you can buy and sell stock.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now you&rsquo;re armed with information about terminology like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Stocks and shares<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Common and preferred stock<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Bull markets and bear markets<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You should be closer to starting your stock trading journey.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keen to know how to get started?&nbsp;<\/span><\/p>\n<p><a href=\"\/create-account\"><span style=\"font-weight: 400;\">Create an account<\/span><\/a><span style=\"font-weight: 400;\"> with ZuluTrade and prepare to start trading.&nbsp;<\/span><\/p>\n<p><strong><em>Disclaimer<\/em><\/strong><strong><em>: <\/em><\/strong><em><span style=\"font-weight: 400;\">The views expressed do not constitute investment or any other advice\/recommendation\/suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in this article do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade. Every metric and the statistical number is a result of a past performance which does not constitute a promise or a certainty for a future one.<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Want to know how stocks work? Oftentimes, there can be a lot of jargon associated with stock trading that can make it an intimidating process to start. You&rsquo;ll need to put in the time to research stock and the markets you invest in, and being here is the first step.&nbsp; We&rsquo;re going to cover all [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2436","post","type-post","status-publish","format-standard","hentry","category-knowledge-crunch"],"metadata":{"rank_math_internal_links_processed":["1"],"_edit_last":["4"],"rank_math_og_content_image":["a:2:{s:5:\"check\";s:32:\"77cbcd42443a11fd53dc69e385582926\";s:6:\"images\";a:12:{i:0;s:81:\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Stock_Definition.png\";i:1;s:76:\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Apple_Stock.png\";i:2;s:79:\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Facebook_Stock.png\";i:3;s:86:\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/APPL_Dividend_History.png\";i:4;s:80:\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Preferred_stock.png\";i:5;s:90:\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/GOOGL_Company_Performance.png\";i:6;s:81:\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/NASDAQ_Composite.png\";i:7;s:93:\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/DOW_JONES_INDUSTRIAL_AVERAGE.png\";i:8;s:73:\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/FTSE_100.png\";i:9;s:79:\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Stock_Exchange.png\";i:10;s:82:\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Investment_Budget.png\";i:11;s:80:\"\/blog\/blog\/image.axd?picture=\/How does the Stock Market Work\/Buy_Your_Stocks.png\";}}"],"rank_math_analytic_object_id":["110"]},"pll_post_group":null,"_links":{"self":[{"href":"https:\/\/blog.zulutrade.com\/fr\/wp-json\/wp\/v2\/posts\/2436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.zulutrade.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.zulutrade.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.zulutrade.com\/fr\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.zulutrade.com\/fr\/wp-json\/wp\/v2\/comments?post=2436"}],"version-history":[{"count":1,"href":"https:\/\/blog.zulutrade.com\/fr\/wp-json\/wp\/v2\/posts\/2436\/revisions"}],"predecessor-version":[{"id":3786,"href":"https:\/\/blog.zulutrade.com\/fr\/wp-json\/wp\/v2\/posts\/2436\/revisions\/3786"}],"wp:attachment":[{"href":"https:\/\/blog.zulutrade.com\/fr\/wp-json\/wp\/v2\/media?parent=2436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.zulutrade.com\/fr\/wp-json\/wp\/v2\/categories?post=2436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.zulutrade.com\/fr\/wp-json\/wp\/v2\/tags?post=2436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}