börse4me: The market and the stock exchange as a marketplace

The market and stock exchange as a
marketplace. Markets, marketplaces, stock exchanges. When you pick up your
smartphone or follow the news, you often see information about markets. You know
about flea markets and supermarkets, but what other kinds of markets are there?
How do they work? All markets work on the same basic principle. Supply meets demand, resulting in prices. On offer, apart goods, services, labour, money and capital. Demand comes from private individuals, companies the government, state and local
authorities. Prices emerge on the various markets. Goods and services market, labour market, the money market for short term capital and the capital market for long
term capital such as shares. The stock exchange is a key hub in the capital
market. The capital offered mainly serves the demand of companies and the public
sector. This marketplace enables certain goods and securities such as shares and
bonds to be traded. A stock exchange performs many functions, enabling a
country’s capital market and economy to operate properly. It brings investors
with companies needing capital together. Companies can use capital to invest and
grow. The stock exchange helps shape the capital market, provides a trading platform, keeps markets under surveillance and gives new
companies and members admission to list to trade. Anyone can find out about
prices and markets on the stock exchange. Understood! Supply and demand come
together on markets and prices emerge. Markets such as stock exchanges are
important so that the economy can function. I’m off to the flea market.

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