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Stock Market... huh? The stock market works like this, if a client wants to buy a share of a certain stock, he/she tells its broker to buy so many stocks for so much money. Its broker enters their order by calling the trading desk he uses to make the order. Then the trading desk calls and informs the market maker at the stock exchange to see if the firm can buy the stock at the price suggested. Meanwhile another client wants to sell his share(s) of the same company at a bigger price than the first client. The second clients firm contacts the market maker at the same time. The market maker will then turn and sell the first clients firm for 25 cents more than before. The 25 cent profit pays the market maker for his time and expense to handle this deal. Both clients also have to pay for a commission to their stock brokerage for executing the trade for them. Now you know all about how the stock market works! |
