Daily Archives: November 2, 2019

Lesson 3: What is the Stock Market and How Does It Work

In the last lesson, we learnt what a stock is – it is simply a an ownership claim to proportion of a business. In this lesson, I will attempt to explain what the stock market is and how it works.   Contrary to popular belief, it is not a casino as what most people like to think. Instead, it is the biggest auction house in the world.   The stock market is where investors buy and sell shares in public companies.   It matches sellers of stock to buyers of stock so that transactions between the two parties can take place. In a sense, it acts as a giant auction house where […]