I've seen movies and actual clips of stock traders yelling buy or sell to someone upstairs. There are hundreds of people on the stock floor yelling this, and not hundreds upstairs.
I was wondering what this is all about.
Thanks.
2007-02-28 08:12:32 · 3 answers · asked by mattmannwo 2 in Business & Finance ➔ Investing
The traders are buying and selling to the people on the floor only. The people upstairs are visitors. The traders use hand signals to make the trades. Runners bring them sheets telling them to buy or sell certain stocks for customers who called their office to buy or sell.
2007-02-28 08:19:40 · answer #1 · answered by gvh 3 · 0⤊ 0⤋
This is known as the physical trading floor, and is a common feature of the New York Stock Exchange, the Chicago Mercantile Exchange, and other exchanges, but not the Nasdaq (which is an electronic market). The NYSE is based on a system of specialists who manage the books of certain stocks, i.e. a broker wants to buy 10,000 shares of IBM yells out or makes hand signals to the specialist, the specialist aggregates the orders, and then signals back to other brokers or pricing to the desk upstairs.
Keep in mind though that this system of yelling buy or sell orders is slowly disappearing as electronic exchanges take over.
2007-02-28 16:22:18 · answer #2 · answered by Chetan K 1 · 0⤊ 0⤋
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2007-02-28 16:18:21 · answer #3 · answered by kosmoistheman 4 · 0⤊ 0⤋