It can often happen that people who are new to the stock market will be the ones who crash and burn and lose all their money first, people must know its dangerous & risky to invest. Firstly it should be noted that there isnt one single stock exchange in one location. There are actually lots of exchanges all over the world. Most well known and important are the ones in New York and London. Stock exchanges provide the facilities for penny stock brokers and traders to buy and sell stocks and consequently the prices fluctuate. Most stock exchanges are actually companies themselves. The stock markets are affected by supply and demand and prices of stocks rise and fall as traders buy and sell to try and make a profit. Many things are traded on stock exchanges from shares issued by companies to other investment and financial products.