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The Bid And Ask Prices Are Stock Market Terms Representing The Supply And Demand For A Stock. The Bid Price Represents The Highest Price An Investor Is Willing To Pay For A Share. The Ask Price Represents The Lowest Price At Which A Shareholder Is Willing To Part With Shares.

Stocks are traded on a platform known as an exchange, and the trading is virtual. On the exchange floor, you can see hundreds of people yelling, gesturing, talking on phones, and feeding data. It's a physical place where the exchange of stocks happens. Your broker follows your instructions and sends it to the floor clerk. He/she alerts another firm

Think of a supermarket when you go shopping for your groceries; under one roof you can buy pretty much anything.A stock exchange is a supermarket for the buying and selling of stocks and shares.Individual investors as well as banks and hedge funds are able to buy and sell stocks and shares on any of these exchanges. One smart way to focus on how yo

For stocks, one point equals one dollar. So when you hear that a stock has lost or gained x number of "points," this is the same as saying that the stock has lost or gained x number of dollars. Although one point always equals one dollar, the percentage value of one point movement can be different for two companies

Know how DSPPs work. If you have a small amount of money to invest, and you don't want the returns to be wiped away by expensive brokerage fees, then consider a DSPP. DSPPs allow you to purchase shares of stock directly from a company with the help of a transfer agent. You don't need a broker to be the middleman