What Are the Fundamentals of Stock Exchange?

What Are the Fundamentals of Stock Exchange? thumbnail
Billions of shares are traded every day.

A stock exchange is an institution where the shares of publicly traded companies listed on that particular exchange are bought and sold between brokers belonging to the exchange.

  1. Stock exchanges

    • A stock exchange carries out trade orders either by brokers or electronically. The major stock exchanges in the U.S. are the New York Stock Exchange (NYSE), the NASDAQ, and the OTCBB. The different exchanges trade in different types of public companies.

    NYSE

    • The largest stock exchange in the world is the New York Stock Exchange (NYSE). Brokers who trade on the NYSE buy and sell shares of companies to each other, setting a price for the stock every time a company is traded.

    NASDAQ

    • The Nasdaq exchange trades in predominantly technology-related public companies, such as Microsoft and Cisco.

    OTCBB

    • Over-the-Counter Bulletin Board (OTCBB) focuses on "penny stocks" or companies that cost below $1 per share.

    Fun fact

    • The NYSE began in 1792 when 24 New York City stockbrokers and merchants signed the Buttonwood Agreement.

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  • Photo Credit stock market analysis screenshot image by .shock from Fotolia.com

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