How Stock Market Structure and Trading Work

In this section

• Primary vs. Secondary Stock Markets
  Understand how companies raise capital in the primary market and how investors trade outstanding shares in the secondary market.
• How Initial Public Offerings Work
  Learn how companies go public, what underwriters do, and why IPO pricing, demand, and lockups matter to investors.
• Trading Venues for U.S. Stocks
  Compare major exchanges and OTC markets so you can see how listing standards, liquidity, and transparency differ.
  • Major Stock Exchanges and What They Do
    Review how major exchanges operate and why listing standards, auctions, and liquidity matter to stock investors.
  • Over-the-Counter Markets and Their Risks
    Understand how OTC markets differ from exchanges and why disclosure, liquidity, and trading risk are usually higher.
• Market Participants in Stock Trading
  Identify the roles of investors, traders, brokers, market makers, and other firms that affect stock trading and liquidity.
• Market Regulators and Investor Protection
  Learn how the SEC, FINRA, exchanges, and related regulators shape market conduct and protect stock investors.