How the stock market works

Shares, exchanges, and what actually happens when you buy a stock.

What is Trading?Lesson 2 of 8

All lessons

By the end of this lesson you'll be able to:

01Explain what a share represents
02Describe how an exchange matches buyers and sellers
03Explain what moves a stock's price

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Is the Stock Market? A Beginner's Guide to How It Works

Key terms

Stock Market Exchange Liquidity

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

Question 01
What does owning a share give you?
Question 02
What is the main role of a stock exchange?
Question 03
What ultimately sets a stock's price?
Question 04
What is the 'bid' price for a stock?
Question 05
You buy 50 shares at $20 each. How much capital does the position require, before fees?
Question 06
You own 100 shares of a company that has 1,000,000 shares outstanding. You own about:
Question 07
A company reports much stronger earnings than expected. All else equal, what is its share price most likely to do?
Question 08
Which of these is most likely to move a stock's price?
Question 09
If far more buyers than sellers want a stock, what does its price tend to do?
Question 10
Suddenly there are far more sellers than buyers for a stock. What should you expect the price to do?

Answered 0 of 10 · pass 70% (7/10) to complete

What is Trading?2 of 8

How the stock market works

Shares, exchanges, and what actually happens when you buy a stock.

What is Trading?Lesson 2 of 8

All lessons

By the end of this lesson you'll be able to:

01Explain what a share represents
02Describe how an exchange matches buyers and sellers
03Explain what moves a stock's price

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

What Is the Stock Market? A Beginner's Guide to How It Works

Key terms

Stock Market Exchange Liquidity

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

Question 01
What does owning a share give you?
Question 02
What is the main role of a stock exchange?
Question 03
What ultimately sets a stock's price?
Question 04
What is the 'bid' price for a stock?
Question 05
You buy 50 shares at $20 each. How much capital does the position require, before fees?
Question 06
You own 100 shares of a company that has 1,000,000 shares outstanding. You own about:
Question 07
A company reports much stronger earnings than expected. All else equal, what is its share price most likely to do?
Question 08
Which of these is most likely to move a stock's price?
Question 09
If far more buyers than sellers want a stock, what does its price tend to do?
Question 10
Suddenly there are far more sellers than buyers for a stock. What should you expect the price to do?

Answered 0 of 10 · pass 70% (7/10) to complete

What is Trading?2 of 8

How the stock market works

By the end of this lesson you'll be able to:

Read the guide first

Quick check

What does owning a share give you?

What is the main role of a stock exchange?

What ultimately sets a stock's price?

What is the 'bid' price for a stock?

You buy 50 shares at $20 each. How much capital does the position require, before fees?

You own 100 shares of a company that has 1,000,000 shares outstanding. You own about:

A company reports much stronger earnings than expected. All else equal, what is its share price most likely to do?

Which of these is most likely to move a stock's price?

If far more buyers than sellers want a stock, what does its price tend to do?

Suddenly there are far more sellers than buyers for a stock. What should you expect the price to do?

How the stock market works

By the end of this lesson you'll be able to:

Read the guide first

Quick check

What does owning a share give you?

What is the main role of a stock exchange?

What ultimately sets a stock's price?

What is the 'bid' price for a stock?

You buy 50 shares at $20 each. How much capital does the position require, before fees?

You own 100 shares of a company that has 1,000,000 shares outstanding. You own about:

A company reports much stronger earnings than expected. All else equal, what is its share price most likely to do?

Which of these is most likely to move a stock's price?

If far more buyers than sellers want a stock, what does its price tend to do?

Suddenly there are far more sellers than buyers for a stock. What should you expect the price to do?