Identify the various exchanges where stocks can be traded and discuss their similarities and differences (i. e. NYSE, NASDAQ). What types of companies are traded on each?

A stock exchange does not own shares. Instead, it acts as a market where stock buyers connect with stock sellers. Stocks can be traded on one or more of several exchanges such as the New York Stock Exchange (NYSE) or the Nasdaq. Although you will most likely trade stocks through a broker, it is important to understand the relationship between exchanges and companies, and the ways in which the requirements of different exchanges protect investors.

Read on to find out more about some of the basics of the different kinds of exchanges where equities and other financial instruments are traded on a daily basis.

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