What happens when you buy a stock
Process map by Brian. 10 steps, 1 layer. Tags: finance, stocks, investing, business.
- You: Press buy on your app
- Your broker: Checks you have the cash
- Your broker: Sends the order to an exchange or a market maker
- Stock exchange: Matches it to someone who wants to sell at your price
- Stock exchange: Did the order find a match?
- Clearing house: The trade is confirmed to both sides
- Clearing house: Money and shares change hands a day later
- You: The shares show in your account
- You: The price moves with the news and with everyone else's orders
- Stock exchange: It waits in the order book until the price moves