Rational Rose Tools Interview Questions
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Trading Of Stocks
Exchanges are the places where both the sellers and the buyers transact with each other. Exchanges can be of two types: physical and virtual. Physical exchanges have some trading floors for the transactions, while the virtual exchanges make use of computers and Internet for the trading. It is most likely that you have seen the actions of the traders going out in the physical exchanges on TV or through some other sources.
Stock market is a place that provides all of the basic requirements that one needs to trade in a secure environment. It would have been almost impossible to trade or transact without compromising with your security and privacy, if this kind of exchanges were not there. So, the exchanges could be taken as a wholesale market that caters to the need of every buyers and sellers.
Now proceeding further to understand the stock market one must know the importance of the two types of market: Primary & Secondary. Primary market is involved in the creation of securities through IPO and secondary market deals with the trading of those securities. This very secondary market is construed as the stock market, where the investors trade their securities without any direct engagement of the issuing company.
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