9. What is the Stock Market?

What is a stock market?

How does the stock market work?

• Sellers > Buyers: Buyers Market
• Sellers < Buyers: Sellers Market

What is a limit and stop order?

Market order is an order that doesn't care about the price but buy/sell shares.

• Stop order: Transaction happens once, so the price you set is not the same if you sell them to more than one buyers. For example, selling 100 shares, you could sell it at $65 for the first 10 shares, but could do it at higher/lower prices for the rest of the shares.
• Limit order: $65 or more then execute the trade.

Benjamin Graham's Mr. Market

You can't change his behavior, but you can react to it. Never follow Mr. Market's changing emotions. Instead, remain calm and competent, and take advantage of the opportunities Mr. Market presents. "Mr. Market is your servant, not your guide."