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
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 who do you buy stocks from
These firms provide personalized investment advice and wealth management in addition to executing trades, though they typically charge higher fees. 2. The Counterparty: Who is selling? The process of buying can be viewed from
These are the most common for individual investors (e.g., Fidelity, Charles Schwab, Robinhood). They offer low or zero commissions and user-friendly apps. Their job is to provide liquidity , ensuring
Just as you are buying, another person somewhere else may be selling their shares of that same company at that exact moment.
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.