The stock market works as an organized system where companies sell ownership and investors buy and sell them.
When a company goes public, it issues shares through an IPO. After that, shares are traded between investors in the stock exchange.
Prices move because of supply and demand. If more people want to buy, the price goes up. If more people get rid of shares, the price drops.
Market participants include retail investors, institutions, and liquidity providers. Each plays a role in keeping liquidity.
The stock market what is a penny stock also influenced by economic news, which can boost confidence.
In summary, the stock market works like a live pricing system, where values are driven by activity every second.