Most of us think of stock exchange as the image of chaotic scene of the trading floor of the New York Stock Exchange.
However, with the internet the electronic broker is now the preferred method of trading as it is faster and easier.
The old method involved a process of floor trading through a broker.
When you told your broker that you wanted to buy a certain amount of shares of a particular stock, the broker's order department sent the order to the floor clerk on the exchange floor.
The floor clerk, then placed the order to the traders that were willing to sell the stock.
The clerk and the trader agreed on a price, and completed the transaction.
The clerk then sent the order to the broker who confirmed the transaction with you.
Electronic trading is much faster as it uses computer networks to match up buyers and sellers of stock.
This system is faster and more efficient than using brokers.
For the new trader, this is important because transactions to confirmations are almost instantaneous.
The electronic system of buying and selling stock also assist the investor by placing them closer to the market, or at the current price as you see it.
While with the old system you would try to buy for a low price, but by the time your order was executed you might have paid too high of a price and so your new investment was now a burden rather than a benefit.
In spite of this popularity with trading stocks electronically, most people do not understand the stock trading basics.
If you are considering entering into the buying and trading stocks in order to create wealth, you would be well served by researching stock trading courses that teaches you how to be successful, by using a system.
A system is a method of buying and selling stock that will produce a consistent result, most of these systems will work, some better than others, at producing an passive income from the buying and selling of stocks.
Without such a system working for you, you a raft in the rapids without an oar, and you will be taken for a ride, and a good soaking.
Sorry for the metaphoric example but there is truth to it that it will be a bad experience if you do not get and work and investment system.