But where are stocks bought and sold lets go back in

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Unformatted text preview: ry store. You know where clothes are bought and sold—at the clothing store. But where are stocks bought and sold? Let’s go back in time to help answer the question. In 1792, 24 men met under a buttonwood tree on what is now Wall Street in New York City. They essentially bought and sold stock (for themselves and their customers) at this location. Someone might have said, “I want to sell 20 shares in company X. Are you willing to buy these shares at $2 a share?” From this humble beginning came the New York Stock Exchange (NYSE). Every weekday (excluding holidays) men and women meet at the NYSE in New York City and buy and sell stock. Suppose you own 100 shares of a stock listed on the NYSE. Do you have to go to the NYSE in New York to sell it? No, you would simply contact a stock broker (either over the phone, in person, or online) and he or she would convey your wishes to sell the stock to a person at the NYSE itself. That person at the NYSE would then execute your order. In addition to the NYSE where stocks are bought and sold, other stock exchanges and markets also serve as a place to trade stocks and bonds, including the American Stock Exchange (AMEX) and the NASDAQ (pronounced NAZ-dak) stock market. NASDAQ stands for National Association of Securities Dealers Automated Quotations. Buying and selling stock on the NASDAQ does not take place the same way it takes place on the NYSE. Instead of the buying and selling occurring in one central location, NASDAQ is an electronic stock market with trades executed through a sophisticated computer and telecommunications network. The NYSE might in fact change to this kind of market in the near future. Instead of people meeting together in one location to buy and sell stock, they could simply do it electronically. Increasingly, Americans are not only buying and selling stocks on U.S. stock exchanges and markets, but in foreign stock exchanges and markets too. For example, an American might buy a stock listed on the German Stock Exchange, the Montreal Stock Exchange, or the Swiss Exchange. The Dow Jones Industrial Average (DJIA)...
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This document was uploaded on 01/16/2014.

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