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How Stock Exchanges Work

Understand where stocks are traded and how orders get executed.

StockLrn Team
5 min read
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The Marketplace for Stocks

Stock exchanges are organized marketplaces where buyers and sellers come together to trade shares.

Major U.S. Exchanges

  • NYSE (New York Stock Exchange): The largest exchange by market cap
  • NASDAQ: Known for tech companies and electronic trading

How Trading Works

When you place an order through your broker, it gets routed to an exchange where it matches with an opposite order. Market makers help ensure there's always someone to trade with.

Trading Hours

Regular trading hours are 9:30 AM to 4:00 PM Eastern Time. Pre-market and after-hours trading extends these hours but with lower liquidity.