Stock Market Players

If one is interested in investing , it is valuable to know who the main players in the stock market game are . The main players in the stock market are the exchanges . Exchanges are where the sellers are matched with the buyer to both facilitate the trading and help to set the price of the stock shares . The primary exchanges are the NASDAQ , the New York Stock Exchange , all of the ECNs ( electronic communication networks ) and several other regional exchange . Not too long ago , all of the trading was done through the traditional exchanges , but today most of the stock market trading is done through NASDAQ , which uses ECNs and other firms with access to the NASDAQ to facilitate the trading .
One of the foremost and most prominent exchanges for investing in the stock market is the New York Exchange . It is also one of the largest stock market exchanges in the world . The NYSE is operated by the not-for-profit corporation New York Stock Exchange Inc, with its main building located at 18 Broad Street , at the corner of the Wall Street , in the New York City , New York , U.S.A. It is home to some 2,800 companies whose stock is valued at nearly $15 trillion in the global market capitalization . Investing your money on NYSE , unlike investing in some other more “ virtual “ exchanges , always involve face-to-face communication in a particular physical location . There is a podium /desk on the trading floor for each of the members of the stock exchange . Exchange members interested in buying and selling a particular stock on behalf of investors meet in a predetermined spot , where NYSE employee facilitates the stock price negotiations between the buyers and the sellers .
A different kind of stock market exchange arose in the later part of 20th century and has changed the landscape of the stock market . NASDAQ , which is an acronym for National Association of Securities Dealers Automated Quotations , is a stock market run by the National Association of Securities Dealers . The NASDAQ National market consists of over 3000 companies that have a national or international shareholder base , meet stringent financial requirements , and agree to specific corporate governance standards . It began trading on February 8 , 1971 as the world’s first electronic stock market . Fueled by the growth of internet stock trading , NASDAQ became the largest American stock exchange by 1999 , with over half the companies trading in United States listed . NASDAQ is made up of the NASDAQ National Market and NASDAQ SmallCap Market . Although the market is based primarily in the United States , NASDAQ has many aliances worldwide , so that today , investing in the stock market is a global activity . NASDAQ allows multiple stock market participants to trade through electronic communication networks structure . To ensure that in chaotic stock market conditions , those placing small market orders are not ignored . NASDAQ created a feature known as the Small Order Execution System .
Before the advent of internet , full service stock brokerage firms like Merryl Lynch have dominated the market . As discount brokers embraced the internet market , full service brokerage firms pretty much ignored what was happening . They didn’t feel they were really competing on price . Instead , they felt their differentiating factors were research recommendations and a relationship with a broker . They didn’t believe their customers were very concerned about price when investing . In addition , it was tough for them to figure out how to incorporate low-priced Internet services into their business models . Most full service brokers are paid commissions out of the fat transaction fees charged to the customers . If they were to provide low-cost trading , how could they provide their brokers with generous compensation ? As a result , investors have been running from full service stock brokers into the hands of firms offering cheap Internet trades . This boom in internet-based stock market investing brought many companies to the front , including such big names as E-trade , TDWaterhouse etc.