The next exchange you have is the NASDAQ. The NASDAQ which launched in 1971, was the first of its kind and it completely changed the way markets traded stocks, also improved the speed and accuracy of trades.
*The NASDAQ is the fastest growing stock exchange in the United States
The NASDAQ opened the very first fully electronic stock market in the world! because of that, the NASDAQ was the place for many computer start-up companies, thousands of which crashed and burned.
The NASDAQ is now growing more and more everyday, all the newer companies like to list on NASDAQ simply because it is way easier to get listed on the NASDAQ rather than the NYSE. The NASDAQ is a “dealer market” which means stocks are traded through multiple buyers and sellers who post their price at which they will buy or sell shares all of this is done over the telephone or computer. (it is much more convenient) as opposed to specialists being on the trading floor.
On the NASDAQ there are over 600+ dealers known as “Market Makers” what they do is kind of tricky so ill try my best:
The “Dealer” which is a big company who has a lot of money, will use their money to buy a bunch of shares of stocks (there are over 600+ companies that do this) Once all these companies own all the shares, they sell the shares to people like you and I. The result from many companies doing this means there is going to be some competition (they are competing to offer the best buy and sell prices) The difference in prices is what causes a stocks price to move up and down. If one dealer is selling a stock at $5 and another is selling the same stock for $6 when the dealer that is selling at $5 runs out of shares to sell then the price will go to the next available which would be the dealer that is selling for $6. That is how the prices move and change in the markets. All of this is done through the computer so nothing is face to face.