Stock Trading happens on exchanges where buyers and sellers trade. There are physical and virtual type of trades.
The stock market provides a secure platform for the traders. Stock Trading happens in two markets:
In Primary Market, securities are created in form of IPO while the secondary market securities are traded without involving the stock issuing company. The stock market is therefore the secondary market. Here is a list of Stock Exchange markets:
The New Yolk Stock Exchange: This is the most popular and prestigious exchange in the world. It has securities for trading from America’s largest companies. A specialist is involved in the trade where he matches a potential buyer and seller and prices determined through an auction method. Once price is decided, the information is sent to brokerage firm who then notifies the investor about the price. The investor then places an order. The us of technology has greatly simplified trade at the NYSE.
The NASDAQ: This is the most popular virtual but over the counter market also known as (OTC). The markets have no brokers and trading is done through electronic media platforms. This market has a selection of a number of the largest companies listed in NYSE. NASDAQ Stock trading activities therefore becomes a trading avenue for large technology companies resulting to a competition with NYSE.
Other Markets for Stock Trading include the National Association of Security Dealers (NASD), American Stock Exchange (AMEX) and the London Stock Exchange.