Players in the Stock Market

In the stock market, on the stock exchange, stocks are listed and traded to the general public.  The actual exchange is a place, a building, where people specialize in connecting buyers and sellers on a second by second basis.  Hundreds of stock traders stand on the exchange floor buying and buy or sell for their clients hoping to get the best price either going into the purchase or making a sale.  

 

Although stocks are traded all over the world the largest stock market in the world which is in the United States is called the New York Stock Exchange (NYSE).  Literally billions of dollars are traded on the floor of this exchange daily.  Even though more and more people are accessing the trade of stocks via the internet, the majority of trades are still done by professionals in these exchanges all over the world.  For example, a few of the other exchanges are in Hong Kong, Paris, London, Frankfurt and several other large cities.   

 

A person wishing to buy or sell a stock can either pick up the telephone or call their broker to make changes in their portfolio or do it themselves on the internet by setting up an account with a choice of many firms.  This is called 'off exchange' trading.  Penny Stocks are often traded in this manner.  Remember that because of fees on a per trade basis are high, it would be ideal not to trade small amounts.  

 

Investors can be firm or they can be an individual and often they purchase stock because they fully intend to hold onto it for a long time, maybe even years.  Normally they have professionals who advise them on these investments which can be mutual funds, pension funds, or equity investments for example.  The professional actually manages the money for the firm or individual and receives payment for doing so.  A term used for these types of transactions is buy and hold.   Not only do these transactions prove to gain equity but are expected to be able to ride out the highs and lows of the fluctuating market.