What about stock trading?
Stocks are traded on a stock exchange where sellers and buyers meet to determine stock prices and trade. The stock exchange is made of brick. Stocks are traded in the trading floor. We often see the blue jacket of the traders of the visual effects of wildly waving their hands, gestures, and trying to confront each other. This exchange is called physical switching.
Other types of exchanges are virtual exchanges. It consists of a computer network, the stock electronic trading. Traders can use computers and the Internet to buy and sell stocks from comfortable homes.
The purpose of the stock market is to facilitate the exchange of securities, in other words, buying and selling stocks. The stock market is like a farmer. Super-complex market, bringing together buyers and sellers of stocks. You can imagine how difficult it is to find a customer to buy your stock in your neighborhood. It may not be easy to find one, even if you advertise in a local newspaper. Even if you find a customer, it is still very difficult to sell him your stock, because the transaction requires some formalities, which can only be carried out by a good brokerage firm.
Stock exchange solves the problem of buying and selling stocks.
There are two types of stock market, primary market and secondary market. The primary market is the market where securities are created through initial public offerings. Once the shares are issued, they are traded on another market, called the secondary market. Thus, the secondary market is where the investor trades the securities previously issued and does not involve the issuer. When we talk about the stock market, we refer to the secondary market. It must also be understood that the transactions of the Company's shares do not directly relate to the Company itself.
There are three major stock exchanges in the United States. They are the New York Stock Exchange – New York Stock Exchange, National Securities Dealers Automated Quotations Association or NASDAQ and American Stock Exchange – AMEX.
Also known as the "big plate", the New York Stock Exchange is the world's most prestigious exchange. Founded in 1792, more than two centuries ago, the New York Stock Exchange is an example of a physical exchange. It is a publicly traded company that provides markets for large US companies, including General Electric, McDonald's, Citigroup, Coca-Cola, Gillette and Wal-Mart.
Orders are entered through brokers who are members of the Exchange. Stocks are auctioned at the site called a trading station. There is an expert who matches buyers and sellers. The current price is the highest price that any buyer is prepared to pay, and the lowest price is the price the seller is willing to accept. Once the deal arrives, the details are sent to the brokerage firm. Computers play an important role on the NYSE. The Exchange's trading floor is located at 11 Wall Street and consists of four trading rooms.
NASDAQ is a perfect example of a virtual stock exchange. It is also known as the OTC market. Transactions on the Nasdaq are conducted through computer and electronic trading networks. Nasdaq traded shares of some of the largest US technology companies such as Microsoft, Cisco, Intel, Dell and Oracle. Brokerage firms act as market makers for a variety of NASDAQ stocks. The market manufacturer provides a continuous bid and ask price. Maintain stock inventory to meet investor demand.
American Stock Exchange or AMEX
AMEX is third in the United States Great Stock Exchange. It provides for small-cap stocks and derivatives trading.
What You Want Stock Trading You will find a stockbroker who will complete an order to buy or sell stock. It is a stockbroker for you to buy and sell stock of all the work. All you have to do is open an account with him and place an order.