Who Do You Buy Stocks From -
The process of buying can be viewed from two perspectives: the intermediary you use to place the order and the actual seller on the other side of the trade. 1. The Intermediary: Stockbrokers
In the modern financial system, individual investors cannot walk onto a stock exchange floor and buy shares directly. Instead, you buy stocks through a (often called a "broker"). These entities act as the middleman, providing the platform and legal infrastructure to execute your trades. who do you buy stocks from
This includes mutual funds , pension funds , or hedge funds that are rebalancing their portfolios. The process of buying can be viewed from
These are professional firms (like Citadel Securities or Virtu Financial) that stand ready to buy or sell stocks at any time. Their job is to provide liquidity , ensuring you can buy a stock even if there isn't an individual seller available at that precise second. 3. The Venue: Stock Exchanges Instead, you buy stocks through a (often called a "broker")
These are the most common for individual investors (e.g., Fidelity, Charles Schwab, Robinhood). They offer low or zero commissions and user-friendly apps.
While you buy through a broker and from a seller, the transaction typically happens on a , such as the New York Stock Exchange (NYSE) or the Nasdaq . The exchange acts as a regulated marketplace that ensures the trade is fair, the price is transparent, and the ownership of the shares is legally transferred to you.




