Investors can utilize the stock exchange to buy and sell stocks of companies. While this basic description of how the stock market works is a sufficient enough to understand what the stock market is, to get a better understanding of how it actually works, it will be vital to learn about the market and stock market strategies, though a formal education. With the Stock Tips service Provider India many investors are now learning how the stock market works through online stock trading courses. Stock market works in stock price. Stock prices are the price that a particular stock is bought or sold for and is often a balance between what price investor wants to sell a stock for, and what price investor is prepared to purchase a stock for. This price is defined by several market factors, such as the financial or technical health of the company.