It illustrates how one transac tion looks from three different perspectives the buyer seller and the stock market professionals who execute the trade 1 oger Smith of Des Moines Iowa decides to invest in the stock market 2 oger consults a broker who ID: 39523
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HOW A STOCK IS BOUGHT AND SOLD he following chart is a detailed explanation ofhow a stock is traded.It illustrates how one transac-tion looks from three different perspectives Ð the buyer,seller,and the stock market professionals whoexecute the trade. oger Smith ofDes Moines,Iowa,decides toinvest in the stock market. oger consults a broker who is a member ofthe The transaction is processed electronically,crediting Roge狕s brokerage firm and debiting the account ofDiane픀s brokerage firm.Both Roger and Diane receive a trade confirmation from their respective firmswithin a few days describing the trade,its terms and conditions,and the exact amount to be tendered or At the post,the specialist who handles makes sure thections are executed fairly and in an orderlymanner.