Commerce in stock markets means the transfer for cash of security or a stock from a seller to a buyer. This requires a cost to be agreed on by both of these parties. Equities (stocks or shares) confer an ownership interest in a certain business.
Participants in the stock exchange range from small-scale individual stock investors to bigger dealers investors, who can be based any place on the planet, and could comprise pension funds, insurance companies or banks, and hedge funds. Their purchase or sell orders could be carried out on their behalf by a stock exchange dealer.
Some exchanges are actual places where trades are performed on a trading floor, by a process called open outcry. This approach is used in some stock exchanges and commodity exchanges, and calls for dealers entering offers and verbal bids . An example of this kind of exchange is the New York Stock Exchange. The other sort of stock exchange is a virtual sort, where trades are made by dealers, composed of a network of computers. An example of this kind of exchange is the Nasdaq.
An expected buyer offers a special cost for a stock, along with a prospective seller requests a certain cost for the exact same stock. Selling or purchasing at marketplace means you’ll take bid price or any ask price for the stock. When the ask and bid prices fit, a deal happens, on a first come first served basis if there are askers or multiple bidders at a specified cost.
The objective of a stock exchange would be to ease the exchange of securities between buyers and sellers, thereby supplying a market (virtual or actual). The exchanges provide real time trading info in the listed securities, facilitating price discovery.