How do prediction market prices work?

Prediction market shares trade between $0.00 and $1.00. The price represents the market's implied probability. A share at $0.65 means the market assigns 65% probability to that outcome. If the event happens, shares pay $1.00 each. If not, they pay $0.00. Prices move as traders buy and sell based on new information. You profit by buying shares below what you believe the true probability is and being correct.