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What Is the Stock Market & How Does It Work?

By Matthew Frankel, CFP – Updated May 25, 2026 at 1:25 AM EST | Fact-checked by Frank Bass

Key Points

  • Stocks represent ownership in companies, with public trading via exchanges like NASDAQ.
  • Prices depend on supply and demand; brokers facilitate buying/selling through market makers.
  • Indexes like S&P 500 track collective stock performance, aiding investment comparison.

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