The U.S. stock market generally mentioned includes stocks listed on the New York Stock Exchange and the Nasdaq Stock Market.

Trading Rules Venue

Stocks are traded on exchanges, such as NYSE, NASDAQ and AMEX. There are two main types of exchanges, physical and virtual. Physical exchanges are like the scenes depicted in movies and on CNBC, with madmen in blue vests waving papers and shouting prices.

Virtual exchanges are actually connected by computer networks, and the entire transaction process is electronic. The reason stocks trade on exchanges is because that's the best way to facilitate trades. Placing a classified ad in your local newspaper to buy and sell stocks is simply too slow. Generally, electronic exchanges are more efficient, which is why even face-to-face exchanges mostly have electronic trading services.

There are actually two markets here: the primary market and the secondary market. The primary market is where shares are issued and is often mentioned in conjunction with an IPO. Here, a company issues securities, and banks underwrite (often called underwriters) to assist with the issuance. Sales happen on the secondary market. The secondary market is the real stock market. Here, shares are traded between parties independent of the issuing company. Once a stock trades on the secondary market, the issuing company no longer controls the trading of the stock. NYSE, NASDAQ and AMEX are all secondary markets.

NYSE (New York Stock Exchange) is considered the most famous exchange in the world. It was established more than 200 years ago in 1792 with the signing of the "Sycamore Agreement" by 24 stockbrokers and businessmen. Many of the world's largest companies are listed on the NYSE, such as Coca-Cola, General Electric, and Walmart.

The New York Stock Exchange is a physical exchange, and transactions are conducted face-to-face. Whenever you hear "listed exchange," you're referring to the New York Stock Exchange. Order operations are completed at specific locations (also known as the trading floor) by exchange members and floor brokers who submit trades. Using a simple auction method, the highest price that the buyer is currently willing to buy is combined with the lowest price that the seller is currently willing to sell (called the bid and ask price). Stocks are quoted either by their last selling price or by bid and ask prices. For example, the last selling price of the stock was 24.50, and the current highest bid is 24.45 and the lowest inquiry is 24.55, then the quote can be "24.50" or "24.45" or "24.55". People called experts control all orders for a stock by matching buyers and sellers. All of this can be done manually, although computers are also widely used to automate the trading process.

The NASDAQ (NASDAQ) market is a virtual market, just like the OTC (over-the-counter) market. There are no trading floors, no experts, and no central location. Instead, all trading is conducted through the dealer's computerized network. This minimizes the possibility of computer downtime because the network is independent (if one computer fails, the others continue to connect). Nasdaq was previously considered second to the NYSE, but since the high-tech boom and the rapid growth of many companies like Microsoft and Intel, Nasdaq has been considered the main competitor of the NYSE, both in terms of reputation and In terms of trading volume. The brokerage business of the Nasdaq system is performed by market makers. Unlike the experts on the NYSE, market makers only control their own bids and ask prices, rather than the entire trading process for a stock. A stock can have many market makers, all trading at the same time.

AMEX (American Stock Exchange) is the third largest exchange in the United States. Before the emergence of Nasdaq, it was the second largest exchange. In 1998, AMEX was bought by NASD, which is actually the parent company of Nasdaq. Currently, AMEX mainly trades small-cap stocks (market capitalization will be explained in the next section) and options.

OTCBB stands for Over-the-Counter Trading System. Its market, known as the Pink Sheets, includes companies that are not yet eligible to list on the main market. These are also known as penny stocks. This market has few rules and, as such, is riskier than the formal market.

Trading varieties

1) Stocks, common stocks and preferred stocks, listed and traded securities, new stocks and equity refinancing, Nasdaq and OTC trading systems, securities, international stocks, private and Private investment in public stocks.

2) Options Exchange rate, index and foreign exchange options.

3) Bonds, funds and other instruments.