How does the stock market work?
I look at the little graphs of what different stocks are worth, and it looks like a monkey drew them. Who actually sits there and counts buyers and sellers and determines stock prices? And if the stock market is the indicator of the economy's well-being, then how can it be closed on weekends!? If it can be turned on and off at will, does that make it a man-made construct? And if so, why does it follow natural laws of supply and demand?
Public Comments
1. The economy in general follows the Law of Supply and Demand. That's part of a Basic Economics class.
The stock market is manipulated and influenced and controlled by the really powerful and rich in some cases. That makes it not a pure example of Supply and Demand.
Closed on Weekends? That is related to history. Weekends have been days of rest from a week's labor. Not typical of a world economy but the people who work there need a weekend break too, right? Ya, I can hear you saying "Let's hire some people for the weekend too." Ya, you could be right.....why don't you work there and try to change it?
2. Simply put. Companies need money. They issue stock. Investors give them money in return. The price of the stock rises and drops based on company performance and its "perceived" value.