Tuesday, September 27, 2011

What is the difference between share price movements and stock exchange?

I know share price movements is the fluctuations or change in share price of a company in a given time period right?


I've been searching around for stock exchange (share market) and know that share price and stock exchange is somehow related.


If i am correct, is share price movements of a company will be shown in a stock exchange report?


I am confuse about what is stock exchange and what does it actually means..


|||Muffin,





If a company is publicly owned (i.e., you can buy and sell the shares with relative ease), the shares of ownership usually will be sold on a stock exchange, like the NYSE, NASDAQ, over the counter bulletin board, etc. There are stock exchanges all over the world, like the FTSE, DAX, etc. Google any of these abbreviations and you'll get a number of hits.





The stock exchange is merely a place where the shares or stock of a company are bought and sold - hence the word "exchange."





The stock exchange regularly reports the activity of buying and selling of all the stocks on their exchange (all the companies that have their stock bought or sold on the exchange - also known as listed on the exchange).





So the share price isn't related to exchange - the share price is what is agreed to between a buyer and a seller. The interesting thing is the buyer and seller don't meet to consumate the transaction - they do it through the exchange. A buyer may buy at the market price (what is being asked by the seller) or may issue a limit order (I won't pay more than X amount). Likewise the seller has the same options as a buyer - issue a market or a limit order.





Here's a link that you examine:


http://ezinearticles.com/?How-Does-the-S鈥?/a>





Good luck.

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