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How does a stock market work?
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A stock market is a public entity that facilitates the exchange of securities between buyers and sellers. A stock market also comprises of market makers and traders who take part in trading. The stocks are essentially security instruments that represent ownership of a company and entitle the owner to part of the company's future earnings. The stock market is essentially where companies get capital for the future growth and expansion of their business. It works by allowing people to buy and sell stocks of publicly listed companies at a fixed price. The price of a stock is determined by a combination of supply and demand, and its share price will fluctuate according to the fluctuations in the market.