How Stock Trading Works
Brokers buy and sell stocks through an exchange. Often charging a commission to do so. A broker is a person who is licensed to trade through the Exchange. A broker is either on the trading floor or can make trades by phone or on his computer
An exchange is like a warehouse in which you can buy and sell stocks. A person or computer must match a buy order to a sell order. and vice versa. Some exchanges work like auctions on an trading floor and match buyers to sellers electronically. Some examples of stock exchanges are…
The New York Stock Exchange.
The Tokyo Stock Exchange.
Worldwide Stock Exchanges has a list of major exchanges. Over-the-counter stocks are not listed on a exchange and you can look up information on them at the OTC Bulletin Board.
When you buy and sell stocks online you're using an online broker that takes the place of a human broker. You still use money but instead of talking to someone about what to invest in you decide which stocks to trade and you request trades yourself. Some brokerages offer advice from live brokers and broker assisted trades as part of their service.If you need a broker to help you with your trades, you'll need to choose a firm that offers that service