The working of a stock market-
Price movements is the principle on the basis of which a stock market works. Investors buy or sell stock according to the fluctuations going on in the market. The trading of the stocks happens through an exchange or through over the counter market. The selling and buying of public stock happens on a listed stock exchanged like NSE or BSE, while the private stock exchanging occurs over-the-counter markets or through certain dealers. The listing of the company happens through IPO after which stocks are issued in the primary market. These issued stocks are then traded in the secondary market. Investors can buy or sell these stocks through firms or stockbrokers. After placing an order for the stocks, the order is processed at the exchange by the broker. The stock prices and the details are then forwarded to the investor, who gets the shares after 2 days. Portfolios are managed based on the rise or fall of the stock prices.