What is a stockmarket?
Aha! Thats one place you could have never missed in the financially turbulent nineties. Its has been the shrine of money making. We all know it, the bhaji market in your neighbourhood is a place where vegetables are bought and sold. So, no big deal in defining a stockmarket as a place where stocks are bought and sold. You deserve to know more. The stockmarket determines the day’s price for a stock through a process of bid and offer. You bid to buy a stock and offer to sell the stock at a price. Buyers compete with each other for the best bid, i.e. the highest price quoted to purchase a particular stock. Similarly, sellers compete with each other for the lowest price quoted to sell the stock. When a match is made between the best bid and the best offer a trade is executed. In automated exchanges high-speed computers do this entire job.
