Friday, September 30, 2011
What happens in a stock exchange.
Imagine you're at the food court in the mall. There are all these stores that are selling you stuff at different prices and everyone is buying. There is a pizza store, a smoothie store, and a burger store. Everyone is trying to buy and sell stuff so people are yelling all over the place. So there are signals and colours to identify each person.
You want 2 slices of pizza so you send the pizza store a signal. Then you send another signal to the smoothie guy for 1 smoothie. And another to the burger store but you will only buy it if it is a certain price.
Everyone is trying to buy and sell all at the same time and it gets very confusing. There are signals that are used so they can communicate with the other people. Everything is saved in the computers. Most deals are done by computer.