Hello,
I have a question about how exactly the stock market functions.
Before I begin let me clarify: I know WHAT a stock IS. I own stocks, understand basically how they work. Thats not what this post is asking.
The question is “how do changes is stock value EXACTLY happen?”
EG: I understand that the value of stock is correlated to market confidence in the brand and the supply/demand of it all, etc. BUT what specifically happens to translate all that into the stock ticker going up or down. What is translating the human element of stocks into the literal, functional stock value.
What exactly transpires between the stock market reacting to an event and the value you see on the stock market, is a guy entering a thing into a computer that says “this is how much this is worth now?” I have always wanted to know this.
I am assuming this has something to do with algorithms, but then again stocks precede computer technology so I honestly don't know.
Thanks and please be kind to a n00b!
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