as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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how does the stock market work?
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the stock market is a marketplace where buyers and sellers trade shares of stock in companies that are listed on a stock exchange. buyers hope to buy shares at a low price and sell them later at a higher price, while sellers intend to do the opposite and make a profit. the price of the stock is determined by the supply and demand that is being generated on the stock exchange. when more buyers are interested in a stock than sellers and the demand is greater than the supply, the price of the stock increases and vice versa.
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