While you buy through a broker and from a seller, the transaction typically happens on a , such as the New York Stock Exchange (NYSE) or the Nasdaq . The exchange acts as a regulated marketplace that ensures the trade is fair, the price is transparent, and the ownership of the shares is legally transferred to you.
These firms provide personalized investment advice and wealth management in addition to executing trades, though they typically charge higher fees. 2. The Counterparty: Who is selling? who do you buy stocks from
This includes mutual funds , pension funds , or hedge funds that are rebalancing their portfolios. While you buy through a broker and from
When your broker executes your "buy" order, they find a to match it. This seller is known as the counterparty . Depending on the market conditions, the seller is usually one of the following: When your broker executes your "buy" order, they
The process of buying can be viewed from two perspectives: the intermediary you use to place the order and the actual seller on the other side of the trade. 1. The Intermediary: Stockbrokers