You, then, buy a share in the total fund, rather than in one stock. They must be registered with a stock exchange. At a stock exchange, specialists in different types of stocks operate on the floor of the exchange. At the New York Stock Exchange this ''floor'' is a huge room that is packed with traders who frantically signal with their hands their desire to sell or buy blocks of stock. In the U.S. exchanges, trades on the floor must include over 1200 shares.
Smaller orders go by computer to specialist brokers.
If an investor wanted to buy 2000 shares of General Electric stock, for instance, he or she would contact a stockbroker who would then call one of the floor brokers at the New York Stock Exchange. The floor broker would contact the specialist dealing with that stock who, in turn, tells the floor broker the final price of the stock when the sale was made. The investor will pay the original broker a flat fee or a commission, or a percentage of the sale, for providing this service. If so, you may want to start investing. But, you will need to learn how the stock market works first.