Market structure
How ownership becomes a tradable share
A share represents a claim on a public company, but the claim is not the same as a guaranteed payment. Companies raise capital by issuing shares, while investors trade existing shares with one another after listing.
Exchanges, brokers, custodians and market makers connect orders. The quoted bid and ask show where participants are willing to trade; a completed transaction becomes the latest reported price.
Company to price discovery
- Company raises capital
- Shares are listed
- Orders meet
- Trade is reported
A quote describes a transaction or available order, not the complete value of a business.



