I get that supply and demand sets the price but WHO actually dictates the price?
Like do a special group of brokers negotiate a price, make a transaction and then that is the price on the market? Is it an algorithm and if so How did this work before computers
In: Economics
In the past that is what a seat on the stock exchange was. The right to have a person on the floor to trade. These people went back and forth on looking to buy or sell stock. There were specialist the orders for a particular stock went through.
If you want to see it in action look for the futures pits in Chicago on Google. There was a lot of shouting and hand signals.
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