Centralized Market

  

A centralized market is a central exchange where you can buy and sell things in one place. It is very organized, managed by an impartial clearing house and with transparent prices, giving participants confidence and security. The New York Stock Exchange for example is a centralized market.

This is in stark contrast to a decentralized market, where there is no secure exchange or clearing house to manage the trades. Instead this “middle man” is removed and trading is accomplished by directly connecting buyers to sellers. Think: illegal black markets. Or the market for rare coins or stamps or baseball cards. A lot of private transactions online (or in deserted parking garages).

Related or Semi-related Video

Finance: What are Capital Markets?7 Views

00:00

Finance a la shmoop what are capital markets? well you've heard of the great [Planet earth appears]

00:07

markets of the world the Silk Road market, the Arab markets, the stockade

00:12

markets well the same thing exists for money or

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capital, investment capital what is investment capital yeah stocks

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bonds derivatives above stocks and bonds like putting call options commodities

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like coins and water rights and oil oh and Bitcoin don't forget Bitcoin and

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yeah CME trades it now well all of those are

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fruits in our little fifty trillion dollar global capital market system the [Fruits appear on global capital market system stall]

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actual daily pricing intelligence that comes from capital being traded back and

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forth yep money is bought and sold like used

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cars that never die zombie cars that's what comprises our global capital

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market system and just as in other markets well you always have to watch [Women stood by a store desk]

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out for couponers

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