What is a stock exchange? It’s a stock market where the trading of securities (stocks, bonds, and other investments) takes place on the exchange. The stock exchange provides the platform for trade between buyers and sellers. There are many different types of markets in the stock exchange that you should know about.
In this article, we will discuss 7 different types of markets in the stock exchange:
- Retail Market or Specialist Market – this is where stocks are traded by brokers who act as intermediaries between buyers and sellers.
- Institutional Markets – these are large firms, mutual funds, pension plans, etc., that buy shares from companies to invest their clients’ money;
- Intermediary Market – also known as the stock market, this is where stocks are traded by brokers who act as intermediaries between buyers and sellers;
- Bull Market – stock prices are high and rising;
- Bear Market – stock prices are low and falling;
- Fallow Market – the stock price is stagnant or moving sideways.
- One-sided Market
- The retail market consists of brokers that act as intermediaries between buyers and sellers in the stock exchange with stocks traded mainly through high volume orders executed electronically either on organized stock exchanges (NASDAQ) or less formal over-the-counter stock markets (OTCBB).
This is where stocks are traded by brokers who act as intermediaries between buyers and sellers. This stock market usually has volumes of less than one million shares per day. The stock exchange, sometimes also known as the stock market, is where stocks are traded by brokers who act as intermediaries between buyers and sellers.
It can be organized either on formal stock exchanges or unorganized over-the-counter stock markets such as NASDAQ or OTCBB. Its trade volume varies from more than one billion shares to few hundred thousand, but it’s mainly through high volume orders executed electronically.
- The Institutional Market stock market consists of large firms, mutual funds, pension plans, etc. that buy stock to invest their clients’ money in the stock exchange with stocks traded mainly through high volume orders executed electronically either on organized stock exchanges (NASDAQ) or less formal over-the-counter stock markets (OTCBB).
- The Intermediary Market is also known as the stock market, where brokers who act as intermediaries between buyers and sellers trade stocks mostly through high volume orders executed electronically either on organized stock exchanges such as NASDAQ or unorganized OTCBB.
- Bull Market refers to when stock prices are rising
- Bear Market also refers to stock prices falling.
- Fallow Trading occurs when there is no buying pressure for shares at any price level, and it can be found on stock exchanges.
- A One-Sided Market is when stock prices move in one direction, either up or down.
Conclusion:
The stock market is one of the most important aspects of our society. The stock exchange provides a platform for trade between buyers and sellers with various markets such as retail, institutional, intermediary, or the stock market, which are all very different from each other. To know more, go to AvaTrade Brokers’ website.
