Interactive Broker Practical Trading Course
— trading — 1 min read
The roles of the stock market
- To provide a venue for investors to buy and sell individual company shares, funds or other financial products.
- To create an agreeable value for the exchange of financial products through the mechanism of price discovery.
- To create a universe for capital exchanges between willing buyers and sellers.
- They are private businesses that facilitate financial transactions throughout the day.
- Most exchanges are fully electronic and receive inbound orders from broker dealers whose clients want to buy and sell shares.
- An exchange has members and rules about who and how transactions may be made.