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1. How stock prices are determined? 2. What stock markets do?

1. How stock prices are determined?

2. What stock markets do?

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Answer #1

1. Stocks are traded on exchanges in which the stocks are listed. The price of a stick is determined by the demand and supply of the stocks. The demand is generated by the investors who want to buy the stocks of the company and supply is generated from the investors who want to sell the stocks of the company. Buyers can put their 'buy' requests on the exchanges and the sellers can request the 'sell' requests on the exchanges through brokers. The stock price is determined in real time on the basis of the total demand and total supply of a stock on a given point of time.

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