How does the share-market operate?

Answer 1

A share market is a public entity (a loose net work of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. Actual trades are based on an auction market model where a potential buyer bids a specific price for a stock and a potential sellers asks a specific price for the stock. (Buying or selling at market means you will accept any ask price or bid price for the stock, respectively). When the bid and ask prices match, a sale takes place, on a first-com-first-served basis if there are multiple bidders or askers at a given price.