Online stock trading company – How far apart a buyer and a seller are physically is of no consequence.

The price of stock is set by the consensus of opinion of all the people who are either offering or bidding for stock of that company at that time. All dealers are likely to quote close to the same price at any one time. Contrary to the usual conditions discussed above, in some corporations a buyer always receives newly issued stock, and instead of selling he turns in his shares for redemption by the company. The principal group of such corporations are the open-end investment companies, usually called mutual funds. The price of a share in a mutual fund is set automatically by the total market value of all the stocks and other property that the fund owns. This is explained further in later chapters.

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