How Securities are Traded?

Securities are traded primarily through exchanges or over-the-counter (OTC) markets. On exchanges like the NYSE or NASDAQ, buyers and sellers execute trades through a centralized system, ensuring transparency and liquidity. In OTC markets, trading occurs directly between parties, often facilitated by brokers, and typically involves less regulation and lower visibility. Trades can be executed in various ways, including market orders, limit orders, and stop orders, based on investors' strategies and objectives.