| > | | | | of the issuing companies. It is the secondary market |
| This article provides useful, detailed information about | | | | that people refer to when they talk about \"the |
| Stock Trading. | | | | stock market.\" The New York Stock Exchange |
| In simple terms, stock is a share in the ownership of | | | | (NYSE) is the most prestigious exchange in the world. |
| a company representing a claim on the company\'s | | | | Also known as a \"listed\" exchange, much of the |
| assets and earnings. The more the stock you acquire, | | | | trading in the NYSE is done face-to-face on a trading |
| the greater your ownership stake in the company. | | | | floor. Here orders come in through member brokers |
| Stocks are mostly traded on exchanges in two basic | | | | and flow down to floor brokers who go to a specific |
| ways: on the floor of the exchange or electronically. | | | | spot on the floor where the stock is traded. At this |
| The trading floor of an exchange resembles a picture | | | | \"trading post,\" there is a \"specialist\" who matches |
| of apparent chaos, with traders yelling, waving, | | | | buyers and sellers. Prices are determined through |
| talking on the phone, and sending wild signals to each | | | | auction. Mind you, the human contact |
| other. The exchange where trade is executed | | | | notwithstanding, computers do play a big role in the |
| electronically involves a network of computers. A | | | | NYSE.The NASDAQ is the second type of exchange, |
| stock market that helps the exchange of shares | | | | where trading is done through a computer and |
| between buyers and sellers is of two types: primary | | | | telecommunications network of dealers with no |
| and secondary. In the primary market, securities are | | | | central location or floor brokers whatsoever. It is |
| created by means of an \"Initial Public Offering | | | | now home to many big technology companies, posing |
| (IPO),\" i.e., the first sale of a stock, which is issued | | | | a serious challenge to the NYSE. There are several |
| by the private company itself. On the other hand, in | | | | big stock exchanges operating in different parts of |
| the secondary market, investors trade | | | | the world. |
| previously-issued securities without the involvement | | | | |