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How does a stock market work?
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A stock market is a platform where investors can buy and sell shares of publicly traded companies, bonds, and other securities. A stock exchange serves as a market for the listing and trading of stocks, allowing buyers and sellers to accept or reject one another's pricing. Through a series of orders, a stock market is able to determine the market value of stocks by gauging the buying and selling interest of investors. In addition to price movements, a stock market also tracks the total number of shares of each stock that has been traded (volume) and other measures of liquidity. Ultimately, a stock market provides important information to investors, allowing them to make informed decisions about buying and selling investments.