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Monday, March 9, 2009

Stock Trading

Just imagine that you are a shareholder of a company XYZ and are trying to sell your shares in the company to somebody who is interested in buying them. Now if you wanted to look for buyers there a couple of options in the real world you could do that like put up a sale notice or give an advertisement in a local newspaper or go to internet and try to list it for sale at one of the auction places. Just imagine what would happen to world when almost everybody who owns the shares tries to do that, you would practically have a mad rush of advertisements all over the world.The next best thing is that you would usually go to a place where all the buyers and sellers can congregate and try to settle deals with each other for a particular price, which typically for you is a stock exchange.Trading on the New York Stock Exchange happens on the trading floor where the traders enter into a secure area called the trading floor and will try to strike up deals pretty much face-to-face. The brokerage firm will have clients who need to sell the shares, now these brokerage firms will get these orders to the floor borkers, who in turn go to a specific section of the exchange known as trading spot, which essentially is an area where the trading for that particular stock takes place.

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