The stock of openly owned companies are purchased and offered at a stock exchange or stock market. You do not require to take a trip to the stock market because there are brokers who will represent your interests by offering and purchasing stock on your behalf.
Without a broker to represent you at the stock exchange, you would need to discover individuals who may be thinking about your stock and work out rates by yourself. This might be a long and expensive venture. If everybody had to do it on their own, most likely not much stock would get purchased and offered.
The stock exchange has an unique result on stock rates. Given that all of the stock is purchased and offered at one specific location, in the U.S. that place is the New York Stock Exchange, financiers can view their stock fluctuate minute by minute. They can have an immediate response to costs, choosing whether to offer or purchase based upon the changes of the stock market.
Any service desiring to offer shares on the stock market must, initially, integrate. Some individuals question if the stock market is or is not a really excellent method to value a corporation.
Independently held shares of stock are not purchased and offered on the stock market. Just openly held shares of stock are purchased and offered on the stock market. A corporation with openly held shares of stock is owned by any number of individuals who purchase and offer their stock freely, on the stock market.
When a corporation, first offers its shares of stock on the stock market it is called an Initial Public Offering (IPO). The individuals who bought shares of stock in this corporation through the stock market are wagering that the corporation will utilize this cash to make an earnings. These investors can then get a return on their financial investment through dividends or by offering their shares on the stock market, at an earnings.