The mechanism of the stock market

We recommend you to visit our website for more info about facebook stock price at http://moneymorning.com/tag/facebook-stock-price/ . How the stock market mechanism works: firstly a company have to make a general offer (go public) so they can get funds from the general public by selling share or bond. General offer given by the issuers for selling effect to the public. This way, public can also buy a portion of the company.

The stock market mechanism does also include: Give a large enough funds for a company to improve their capital structure. Because of the company owned by the public, the company must do their work transparently and this could push the company to grow. The mechanism also allows public to have a portion of a company to improve the economic condition of their country. Therefore, because of the transparency, the company is becoming well known by the public. Indirectly, the company works and promotion proceeds simultaneously.