The prices of shares on a stock market can be set in a variety of ways, however most the most common way is via an auction method where buyers and sellers place bids and offers to purchase or sell. A bid is the price at which someone wishes to buy, and an offer (or ask) is the price at which somebody desires to sell. When the bid and ask coincide, a trade is made.

The overall market is made up of millions of investors and traders, who might also have differing ideas about the value of a particular stock and accordingly the rate at which they are willing to purchase or sell it. The thousands of transactions that occur as these investors and traders convert their intentions to actions by buying and/or selling a stock cause minute-by-minute gyrations in it over the route of a trading day. A stock exchange provides a platform the place such trading can be easily conducted via matching buyers and sellers of stocks. For the average individual to get access to these exchanges, they would need a stockbroker. This stockbroker acts as the intermediary between the buyer and the seller. Getting a stockbroker is most commonly finished by developing an account with a well established retail broker.