Once Shares Are Bought and Sold, You Must Do This

Most stocks and shares are traded on physical or virtual exchanges. The National Stock Exchange (NSE), for example, is a physical exchange. Where some trades are placed manually on a trading floor. It is said that, on the other hand, NSE is a fully electronic exchange. Here, in this exchange, all the trading activity occurs over an extensive computer network. Matching investors from around the world to each other with in the seconds.


All the traders submit orders to buy and sell stock shares. This is done either through a broker or by using an online order entry. A buyer bids to purchase shares at a specified price. And a seller asks to sell the stock at a specified price. A transaction occurs and both orders will be filled, once a bid and an ask will match. In a very liquid market, the orders will be filled almost instantaneously. However, in a thinly traded market, the order may not be filled quickly or at all.

Orders are sent to a floor broker at a physical exchange, such as the NSE. Who, in turn, brings the order to a specialist for that particular stock. In general, the professional facilitates the trading of a given stock and maintains a fair and orderly market. It is also expected that the specialist will use his. Or her own inventory to meet the demands of the trade orders.

Buyers and sellers are matched electronically on an electronic exchange, such as NSE. It is observed that when there is requirement, the market makers offer bid and ask prices. Along with this, they also facilitate trading in a certain security, match buy and sell orders. And use their own inventory of shares.

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