The Stock Market: What is a Stock Market?
“To buy, or sell any parts of the company, you would go to a “stock market”. A stock market is basically a meeting point for anyone who wants to buy a share or sell a share.
Think about it this way, you have a slice of pizza with pineapples and olives on it, but now you don’t want it anymore. Either, you could go door-to-door and try to sell your pizza slice to someone who also wants to eat pizza with pineapples and olives on it, or you could go to a pizza exchange market where everyone who wants to buy or sell pizza comes. Chances are you are more likely to find someone who likes pineapples and olives in a large pizza exchange place than on your street.
Now, if you think about shares the same way, it is much easier for you to sell shares you don’t want in a large marketplace than to try to find someone yourself who wants them on your street.
Let’s say you have a share in a company that makes cronuts. You no longer want to own this company and want to sell it. In order to sell your share, someone else must want to buy it. So you go to the “stock market” and you let everyone know that you have 10 shares in Cronut Bakery that you want to sell. Whoever wants to buy these shares will put their hands up and you can then sell your shares to these people in exchange for money.”