2007-07-26 06:59:23 · 2 answers · asked by Anonymous in Social Science ➔ Economics
There are more differences that similarities, really...
A local market has no market makers; if no one brought broccoli today, there will be no broccoli in the market. Stock exchanges are designed to not let something like this happen; market makers always have every listed security in inventory and respond to supply/demand imbalances by changing prices at which they stand ready to deal.
Further, on a stock exchange, every participant is free to be either a buyer or a seller; in a local market, buyers enter for free while sellers have to rent space. So intraday speculation, which is easy on a stock exchange, is difficult in a local market.
2007-07-26 08:06:15 · answer #1 · answered by NC 7 · 1⤊ 0⤋
On a stock exchange transaction you have to hire sombody, for a fee, to buy or sell the shares of the company[s] you are interested in. You enter a buy or sell bid, and await the results.
In a local 'Produce' market you usually deal first hand with the producer, so you can ask questions about the products they're trying to sell.
Also if it's a perishable product you may or may not be able to get a better price, depending upon sales for the day.
These types of markets far out date the current 'investment' markets, since there are not as many middle men involved.
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2007-07-26 08:38:55 · answer #2 · answered by beesting 6 · 0⤊ 0⤋