“UNDERSTANDING STOCK MARKET TRADING – CHAPTER 1″
Just like any marketplace where sellers and buyers meet to sell and buy physical goods; a stock market is a place where sellers and buyers come together to sell and purchase the shares of different companies that are listed on stock exchange.
Unlike any other marketplace, at the stock market, trading takes place electronically, and therefore, buyers and sellers remain anonymous to each other.
The share market is order-driven, i.e., the buying and selling orders are put on a trading platform, and they are matched automatically. The mechanism of the order-driven market provides the much-needed transparency to the stock market as all the trades placed are displayed on the trading system.