TRADING IN STOCK MARKET
SUBJECT : Management
AUTHOR : G.V. Kesava Rao Ravindra Babu S and K. Yathiraju
PUBLISHED ON : 16/04/18
NUMBER OF PAGES : ( 42 Pages)
PRICE : Rs 27.3

Trading in stock exchange takes place either on the basis of auction system or a trading 􀃁 oor which is order driven or customer driven or a broker-dealer market which is quote driven or dealer driven. In an order driven system, customers buy and sell orders reach a central point where they are matched. In a quote driven one 􀃀 nds for the customer the best price available. Electronic trading simply carries out the same functions automatically. An example for an auction market which is order driven is New York Stock Exchange (NYSE) and of a broker dealer market which is quote driven or dealer driven is the over the counter (OTC) market National Association of Security Dealers Automated Quotation System (NASDAQ). In India we have auction markets in general except in BSE. BSE has a hybrid market which is auction market but quote driven. NSE is an order driven market but quote driven.