A stock exchange market is a body that allows people to trade stocks and securities. A stock exchange market also allows people to issue or redeem securities or other financial securities or to pay income and dividends. The types of securities that are traded include company issued shares, commodities, stocks and pooled investment products such as the types that banks invest in for mutual funds.

In order for securities to be traded on a stock exchange market, they need to be listed. The massive electronic network now known as the modern stock exchange market allows for instantaneous sales, purchase and trades.

Supply and demand is the very basic idea behind the modern stock exchange market. Simply put, the more demand there is for a stock, the more it will be worth. This is one of the ways in which prices for stocks are determined and depending on this demand, prices of those stocks may rise or fall. Other factors also affect the price of stocks.

If a company needs to obtain some sort of financing to expand their business or fund operation of the company, one way for them to get capital is to sell shares or stocks in their company. Purchasers of this stock are called investors. When the company makes a profit, it pays a portion of the profit to the investors or shareholders. These payments are known as dividends.

There are essentially two methods in which stocks can be traded. One method is within a physical location using verbal trading, the other is the modern electronic method. There are not a lot of people who actually trade in a physical location, it is much more prevalent to trade in the stock exchange market online through a brokerage site. Using this method means that you will pay a fee for each trade, or you may pay one fee for a certain number of allowable trades per month.

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