Primary and secondary markets
Companies raise capital when securities are first issued in the primary market. After issuance, investors trade existing shares with one another in the secondary market.
Most day-to-day exchange activity is secondary-market trading.
Orders meet in a market
Exchanges or trading venues match buy and sell interest under their market rules. Brokers provide customer access to those venues.
The displayed market price is the result of available bids and offers at a point in time.
Trading is not the final step
After a trade is executed, clearing and settlement processes move the securities and money between the relevant parties.
Settlement timing and custody arrangements vary by market.
General information only. Investment products can lose value, and terms, fees and regulation can change.