Why are people in the stock market running around so much?
(I always see footage of the stock market and people are running around like crazy and yelling over each other. It seems so chaotic. I know nothing about the stock market or how it works. I know the basics but that’s it. I am just curious. Hopefully someone can give me a good answer and not a smart *** comment or remark. Thanks.)
Answer:
The area is known as “the floor” and “the floor” is divided into “pits.” Each pit represents one product such as a company if the area is about stocks. There are people representing different major brokers that pay to be on the floor. These traders get orders from computers or people in booths above them. They use hand signals to communicate with one another. On the floor they do quick bids and pass notes among each other. Then they pass the deal back to the people on the booth and then they get a new order. The people in the booth are talking to other brokers. The brokers are talking to their customers. Most trades are now done by computers, and about 10% are done on the floor in the NYSE.
Posted: July 26th, 2010 under US Stock Market.
Tags: Stock market, stock market running