Which exchange is known as a computer network where stocks are bought and sold?

Prepare for the WGU Finance Skills for Managers Exam with study resources including flashcards and multiple-choice questions. Get ready to pass!

The correct response highlights NASDAQ as a computer network for stock trading, distinguishing it from other exchanges. NASDAQ, which stands for the National Association of Securities Dealers Automated Quotations, operates as an electronic exchange, relying heavily on a computerized trading system rather than a physical trading floor. This technology allows for real-time trading and efficient order execution, making it a pioneer in the digital trading landscape.

In contrast, the New York Stock Exchange (NYSE) is primarily known for its physical trading floor where brokers buy and sell stocks in person or through a hybrid model that incorporates electronic trading. The American Stock Exchange (AMEX), now part of the NYSE, also had a physical trading floor, although it embraced electronic trading later. The London Stock Exchange (LSE) has transitioned to electronic trading over the years but still retains its historical roots as a traditional stock exchange.

Therefore, NASDAQ stands out as an entirely electronic marketplace, which is why it is recognized as a computer network where stocks are bought and sold.

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