A:

Before the advent of electronic trading platforms, the floor of the stock exchange was the location for market transactions in stock exchanges. The floor of the stock exchange is the physical location of buying and selling stocks on a stock exchange. On the floor of the stock exchange, traders and brokers, surrounded by computers, buy and sell stocks for their various accounts.



While trading on the floor of the exchange is being slowly eroded by electronic trading platforms, this method of trading is still active today. So, traders are not trading on the floor of exchange because they don't have desks, they are there because standing on the trading floor is still a way of trading on the stock exchange. (To learn more, see The Tale Of Two Exchanges: NYSE And Nasdaq.)



This question was answered by Chizoba Morah.



RELATED FAQS
  1. What are some of the disadvantages to taking venture capital?

    Learn how financing a business through venture capital can be a viable source of funding for small businesses but know caveats ... Read Answer >>
  2. Do hedge funds have ticker symbols?

    Discover whether or not hedge funds have ticker symbols, where you can find ticker symbols and the significance of a ticker ... Read Answer >>
  3. Is the upfront cost of Class A mutual fund shares worth it?

    Learn about the differences between mutual fund share classes, and discover under what circumstances the Class A shares make ... Read Answer >>
  4. How does correlation affect the stock market?

    Learn about the role correlation plays in prudent stock market investing, and how the correlation coefficient is used to ... Read Answer >>
  5. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Answer >>
  6. What is the 'Rule of 72'?

    The 'Rule of 72' is a simplified way to determine how long an investment will take to double, given a fixed annual rate of ... Read Answer >>
Related Articles
  1. Fundamental Analysis

    4 Signs It's Time to Fire Your Financial Advisor

    Financial advisors provide valuable advice, but if your advisor communicates poorly, then it may be time to fire them.
  2. Investing Basics

    A Breakdown on How the Stock Market Works

    Learn what it means to own stocks and shares, why shares exist, and how you buy and sell them.
  3. Investing News

    What Could Hurt the Recent Turnaround in Stocks?

    Falling oil prices, bad corporate earnings and a rancorous election season hasn't done much to blunt the rally in stocks. Whether that lasts, depends.
  4. Investing Basics

    3 Investment Fees That Are Negotiable

    Investment fees are a necessary evil but that doesn't mean they have to be overly costly. There are ways to negotiate some of the expenses down.
  5. Investing Basics

    DIY Annuities: What You Need to Know

    Annuities are attractive because they can give you a stream of income, but they can be tricky to buy.
  6. Investing Basics

    Top 3 Stocks to Invest in If You Can't Stand Risk

    Don't have the appetite for risk? Consider these 3 stocks.
  7. Mutual Funds & ETFs

    ETF Fees and Waivers: The Devil Is in the Details

    ETFs are popular because of their low costs. But just how cheap they really are depends on whether there is a fee waiver and how often it is renewed.
  8. Investing Basics

    What Does Negative Shareholder Equity On A Balance Sheet Mean?

    Negative shareholder equity on a company’s balance sheet is a red flag that should prompt potential investors to take a closer look before committing their money.
  9. Fundamental Analysis

    Calculating The Gain Or Loss On An Investment

    Calculating the percentage of change in an investment is easy. Take the amount the investment gains and divide it by the amount invested.
  10. Investing

    What Happens to Bond ETFs in Stressed Markets?

    We are going to dive a little deeper today at how bond exchange traded funds (ETFs) fare when the markets are stressed.
RELATED TERMS
  1. Bunny Market

    Bunny market describes a stock market that does not have an obvious ...
  2. Illiquid

    The state of a security or other asset that cannot easily be ...
  3. Outperform

    An analyst recommendation meaning a stock is expected to do slightly ...
  4. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure ...
  5. Oversold Bounce

    An oversold bounce is a rally in prices that occurs due to the ...
  6. Relief Rally

    A relief rally is an increase in market prices that occurs because ...

You May Also Like

Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center