How Does the Stock Market Actually Work?

The stock market is like a giant auction where people buy and sell pieces of companies. Stocks are like tiny slices of a company, if you own one, you're part of that company. When more people want to buy a stock, its price goes up; when they don’t, it drops.

Imagine a lemonade stand. If many kids want to buy a piece of the stand, its value increases. That’s how stocks work in real life, just with bigger companies and more people involved.