Many stocks are traded through exchanging, whereby buyers and sellers meet in a market and decide on a price. This is what influences Stock Market Direction.
Some exchanges are physical locations where transactions are carried out on a trading floor, where the sellers call on the passersby or buyers through yelling, waving, signaling to them, exhibition display, and demonstrations.
This method is used in some stock exchanges and commodity exchanges, and involves traders entering oral bids and offers simultaneously. An example is New York stock exchange. Orders come in through brokers who are members of the exchange and flow down to floor brokers who go to a specific spot on the floor where the stock trades. Prices are determined using auction method and once the trade has been made, the investor who placed the order is notified.
The other type of stock exchange is a virtual kind, composed of a network of computers where trades are made electronically by traders. An example of such an exchange is the NASDAQ.The New York stock exchange though uses human contact in the process, has evolved and uses computer to process its work.