The Markets: Stock Exchanges

Nearly all well-known public companies list their publicly traded shares on stock exchanges. Stock exchanges offer several advantages over other trading markets, including (1) a set of established rules that are known to and understood by investors; (2) pricing information that is widely disseminated; and (3) a greater number of investors, and therefore greater liquidity. The United States has a constantly evolving slate of trading markets, including various regional and upstart stock exchanges, but the country’s most important stock exchanges are the New York Stock Exchange (NYSE) and NASD