Stocks become available on the marketplace once a company completes something known as an IPO, or an initial public offering. This means that a company’s share is not public and anyone can buy or sell it in the market.
Stock markets are not the primary marketplace. They are a tier2 market. What’s important to note is that companies do not buy and sell their own stock in the stock market
The only activity a company engages in after issuing an IPO is the issuance of new shares, or buying back stock.
In the United States, stock markets made an appearance as late as the 18th century (by this time, port cities in Europe already had flourishing stock markets).
Since stock markets began to proliferate, professionalism and regulation became imperative, this has ensured that buyers and sellers have trustworthy transactions in this market.
In the developed world, stock markets are self-regulatory. These non-governmental entities have the power to make and enforce industry regulations.
Trading shares can be quite an involved process. You need to have invested your time and money to make sure that you get a profit. One of the better-known ways to trade shares is to trade direct , this will ensure that you are not paying middle man fees to an endless chain of people and end up with little to no profit.
You can try and get in on an auction which will help you figure out how prices of shares are set and how the process of pricing works. This will help you immensely since you will be able you value your assets in hand much better and trade accordingly.
In the case of certain stock markets, there are traders who are employed to keep the bids and offers flowing so that at any given time a different group of investors are involved in the buying and selling process. Such people go by the name market maker. Here's some pointers on the markets themselves:
A "spread" is the difference in value of a bid, and of an offer
When this spread is narrow, and the quantity of bids are high, the markets are more liquid
If the volume of buyers and sellers is high, and the prices are lower, there is a better depth in the market
The identifier of a good market is – small spreads (of bid and ask), good liquidity, and excellent depth. All three qualities combined make a market high quality and because of these factors, investors are more friendly towards such markets. Trading stocks can be immensely gratifying, but, it is something you should take on if you have the mental capacity to do so. If your work and life permits, you can definitely get into trading stocks on a regular basis.