Stock trading often occurs on an exchange, which is a venue for buyers and sellers to transact a particular stock at an agreed price.
A stock exchange can either be in a physical or virtual location. A physical stock exchange has a trading floor where stock trading occurs.
There is a lot of waving, signaling and yelling to each trader on the floor. A virtual stock exchange is a computer network where stock trading occurs electronically.
The stock market facilitates the security transactions between buyers and sellers. It reduces investing risks because each stock trader does not need to search around the neighborhood for a particular stock he can buy.
A stock market links both parties to transact a certain stock.
A primary stock market is a venue where an initial public offering (IPO) offers the stock for the first time. A secondary stock market is a venue where investors can buy or sell stocks freely after the IPO.