Buyers and sellers complete deals in a central place, such as the exchange floor, or by using an electronic trading platform, which is how stock exchanges sometimes operate as “continuous auction” markets.
Even while there is typically a central site for maintaining records, commerce is becoming less dependent on physical locations as modern markets employ electronic communication networks, which have the advantages of higher speed and lower transaction costs.
Only brokers that are members of the exchange are permitted to trade on the exchange.
Other trading venues, including electronic communication networks, alternative trading platforms, and “dark pools,” have largely displaced traditional stock exchanges as trading hubs in recent years.
Last Updated on 8 months by pinc