HOW SHARE MARKET WORKS?

                                   In the earlier post we have discussed what is a share? Now the question is how share market or stock market works.
                                   First of all we should know what is a market.A market is place where goods and services are exchanged between buyers and sellers,or a market is a place where sellers and buyers interact with each other.Similarly share market is a place where shares are bought and sold.
                                   So the question is how the prices of these shares are determined?.They are determined   on the basis of demand and supply of a share in the market.And the demand of a share is dependent on the performance of the company,general economic situation in the economy,announcement of budget etc.
                                   for eg: take Infosys shares if the company has announced its quarterly results and if the results had reached the expectation of the market then the demand for the shares increases and simultaneously the share price also increases and viceversa
                                   It should be noted that not every time share prices are determined on the basis of demand and supply.Somtimes speculators tend to create artificial demand for a share and can increase it's price.