Get to Know the Stock Exchanges

Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!

Sharper Insight. Smarter Investing. Manage Preferences MARKETS AND EXCHANGES: WHERE THE DEALS GET MADE In investing terms, the "market" refers generally to the mechanism of demand meeting supply. A market can refer to a physical place where transactions occur, or it can refer to the abstract concept of the totality of buying and selling, as when someone says, "The market is down today." The term "exchange" can sometimes be interchangeable with market, though in most cases an exchange is more specific than a market. An exchange refers to the place where buyers meet sellers, whether directly or indirectly. The most famous exchange is the New York Stock Exchange (NYSE). A mental block for some people who are hesitant to start investing is that they are uncomfortable with putting their hard-earned money on an "exchange." It's hard for many people to visualize how one buys intangible products like stocks and bonds. Once you put your money in, to whom exactly are you giving it? Will you easily get it out? Rest assured, buying and selling securities is a safe, centralized and highly regulated process. With a few exceptions, securities are transacted on one of only a few accredited markets and exchanges. Furthermore, the sellers in every stage of the transaction chain (brokers, for example) are certified by one of a handful of central entities, read on. This lesson explains the background on how these markets and exchanges work. How Stocks Trade Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price. Read More Index Investing Get to know the most important market indices and the pros and cons of investing in them. Read More A Look At Primary And Secondary Markets Knowing how the primary and secondary markets work is key to understanding how stocks trade. Read More The NYSE And Nasdaq: How They Work Learn some of the important differences in the way these exchanges operate and the securities that trade on them. Read More How NYSE Stock Prices are Set NYSE is the place investors think of when they picture traders shouting out prices and making wild hand gestures in a visually chaotic live securities auction process known as open outcry. Read More Investing for Beginners Learn the basics of investing, how to start managing your portfolio, reduce risk, and make smart decisions from a trading and investing analysis professional at Investopedia Academy. Enroll Now. You are currently subscribed as: techandgio.cpex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: