Stock Exchanges

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Stock exchanges are the stores of the stock market. As mentioned in the previous Bite, stock exchanges are the physical locations where investors can buy and sell stock.

Exchanges provide an easy way to connect with a buyer or seller to complete a transaction. However, similar to stores having only a limited number of brands to choose from, a stock exchange only trades certain stocks. To be listed on a stock exchange, a stock must pass an exchange’s listing requirements. The requirements are minimum standards a company must meet to be listed. For example, a stock exchange might require a company to have a certain number of shareholders (investors who own shares of the company).

In the U.S., there are two main stock exchanges: the New York Stock Exchange (NYSE) and NASDAQ.

The NYSE is the largest exchange in the world by value, with a total value of over $28 trillion (as of November, 2021). The exchange is comprised of over 2,400 stocks and is located along Wall Street, which is the iconic eight-block-long street in New York City.

NASDAQ is also headquartered in New York, but operates electronically. The exchange is made up of more than 3,000 stocks. The NASDAQ is known to list the largest tech companies like Meta, Apple, and Microsoft.

Grocery stores have regular opening and closing times and stock exchanges operate the same way. Exchanges typically open at 9:30 am EST (8:30 am CST, 6:30 am PST) and close at 4 pm EST (3 pm CST, 1 pm PST). Exchanges are also closed on certain holidays.

Now that you know how to go shopping for some hot new stocks, let's jump into initial public offerings.

Source: Investopedia | What are Stock Exchanges

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Disclosure: This is not an offer, solicitation of an offer, or advice to buy or sell securities, or open a brokerage account in any jurisdiction where Alpaca is not registered (Alpaca is registered only in the United States). All investments are subject to investment risks, including possible loss of the principal amount invested.
Disclosure: Alpaca does not make recommendations with regard to fractional share trading, whether to use fractional shares at all, or whether to invest in any specific security. A security's eligibility on the list of fractional shares available for trading is not an endorsement of any of the securities, nor is it intended to convey that such stocks have low risk. Fractional share transactions are executed either on principal or riskless principal basis, and can only be bought or sold with market orders during market orders.
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This is not an offer, solicitation of an offer, or advice to buy or sell securities, or open a brokerage account in any jurisdiction where Alpaca is not registered (Alpaca is registered only in the United States).

View Alpaca's disclosures at: https://alpaca.markets/disclosures

Alpaca does not make recommendations with regard to fractional share trading, whether to use fractional shares at all, or whether to invest in any specific security. A security’s eligibility on the list of fractional shares available for trading is not an endorsement of any of the securities, nor is it intended to convey that such stocks have low risk. Fractional share transactions are executed either on a principal or riskless principal basis, and can only be bought or sold with market orders during normal market hours.

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