There are several types of stock exchanges. Some are electronic and others are primary markets. Each has its benefits and disadvantages. This article will provide you with an overview of each type of exchange and what they do. Also, you’ll learn how they protect the interests of investors. If you’re wondering what a stock exchange is, this article is for you.
Electronic stock exchanges
An electronic stock exchange is a market where most trading takes place electronically. These exchanges are considered to be super-fast and efficient, and conduct billions of dollars in trades every day. A typical example of an electronic exchange is the Nasdaq, which requires that companies meet certain criteria to be listed on the exchange, and works with dealers to facilitate transactions between buyers and sellers.
The evolution of electronic stock exchanges is a result of the digital convergence of communication and internet technologies. The first exchanges began operating in 1998, as the Securities and Exchange Commission forced the NYSE to convert from a paper-based market to an electronic one. Later, the merger between the NYSE and Archipelago Holdings changed the NYSE into a hybrid stock market.
Since the introduction of electronic stock exchanges, the trading landscape has changed dramatically. Today, most trades are made using the Internet, whether on an institutional or individual level. As a result, trades are conducted in milliseconds, allowing traders to capitalize on minuscule price fluctuations. The evolution of stock exchanges has led to new ways to do business and improve efficiency …View More Types of Stock Exchanges