TAILIEUCHUNG - 10 Minute Guide to Investing in Stocks Chapter 7

Lesson 7. The Markets. In this lesson you will learn about the physical locations where stock is available for trade and also about computerized networks over which stock is available for trade. So, where are all these trades taking place? Way before there was money, people used to trade items to each other. | l@ve RuBoard PREVIOUS NEXT k Lesson 7. The Markets In this lesson you will learn about the physical locations where stock is available for trade and also about computerized networks over which stock is available for trade. l@ve RuBoard 4 PREVIOUS NEXT k l@ve RuBoard PREVIOUS NEXT Trading Places So where are all these trades taking place Way before there was money people used to trade items to each other. If I had a goat and you wanted it you d offer me three chickens in trade and we d both go off happy. If someone else offered me four chickens or if someone else showed up with a bigger goat there would probably be a lot of yelling involved. Eventually people finally figured out that they d save time looking for other people with whom to trade if they regularly showed up at one designated location where everyone brought something to trade. With the introduction of money these trades evolved into purchases and sales. Thousands of years later the market concept is still very much alive. People who want to buy or sell stocks figure that showing up at the same location at the same time to trade stocks is a pretty good idea. Today over 140 physical exchanges buy and sell trillions of shares of hundreds of thousands of stocks 24 hours per day. Although those figures are mind-boggling they represent only a small fraction of the trades being conducted over computerized networks. Here are the markets New York Stock Exchange NYSE . The largest physical stock exchange in the world. American Stock Exchange AMEX . The rival of the NYSE in size and prestige. Regional exchanges. Fourteen exchanges located around the United States. Over the counter. A term for stocks traded over a computerized network called the National Market System NMS . International exchanges. Stock exchanges in other countries. Other markets. Markets where the trading of financial instruments other than stocks such as futures options and money is conducted. l@ve RuBoard 4 PREVIOUS NEXT

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