Lesson One · Exchange Mechanics
An exchange matches orders. It doesn't own a single share.
When you tap 'buy,' your order hits a sorted list — the — not a human. The scans its cheapest and matches you to a seller in milliseconds. If L1 runs out of shares, your order walks into L2 at a worse price. NYSE, NASDAQ, LSE — each runs its own book. The exchange earns a matching fee and never owns a share. Your competes with every other buyer in that moment.
“The exchange doesn't own the stock. It runs the list that prices it.”