Trading mechanism, Finance Basics

Trading Mechanism

1. An investor approaches brokers who obtain his bid or prefer to the trading floor.

2. At the trading floor, the selling and buying brokers meet and seal that deal.

3. The investor is informed of what occurred or transpired on the trading floor during a contract notice. The notice is send to selling and buying investors.

The notice haves details as like:

  • Number of shares sold or bought
  • Buying or selling price
  • Charges or commission payable etc.

4. Settlement is completed via the brokers.

5. Old share certificate is cancelled or for selling investor and a latest one is issued in the category of buying investor.

Posted Date: 2/1/2013 1:06:15 AM | Location : United States

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