Understanding Where You Invest: Brokerages, Exchanges, Stocks & Crypto

How Brokerages, Exchanges, Stocks, Crypto & True Ownership Work

Hello friends,

Most people buy stocks without truly understanding where they’re buying them, who is selling them, or how the market system works. Today we break down brokerages, stock exchanges, public companies, dividends, crypto platforms, penny stocks, and how the Consistent Investor selects investments.

Brokerages – Your Gateway to the Market

Common U.S. brokerages include:

• Fidelity

• Robinhood

• Schwab

• Public

• E*Trade

• TD Ameritrade

Brokerages allow you to:

• Buy and sell stocks

• Access NYSE & NASDAQ

• Hold cash and securities

• Receive dividends

• Track your portfolio

They connect you to the real marketplace — the stock exchanges.

Stock Exchanges – Where Trades Actually Happen

The two major U.S. exchanges:

• NYSE

• NASDAQ

They hold the order books and match buyers and sellers.

Brokerages send your orders to the exchange; the exchange completes the trade.

Exchanges list:

• Stocks

• ETFs

• REITs

• Some bonds

• Warrants

Public vs Private Companies

Private Companies

• Not traded publicly

• Owned by founders, employees, investors

• No public disclosures

Public Companies

• Listed on exchanges

• Shares available to everyone

• Must report earnings

• Regulated by the SEC

IPO (Initial Public Offering)

The process by which a private company becomes public.

Common Shares vs Company Shares

Common Shares

• What you buy on Fidelity or Robinhood

• Come with voting rights

• Eligible for dividends

Company Shares

• Insider shares

• Preferred stock

• Restricted shares

• Often not available to the public

Dividends – How Companies Pay Shareholders

Dividends come from a company’s profits.
They are:

• Paid quarterly (usually)

• Deposited automatically

• A sign of strength

• A major part of your 50% Income category

What Each Exchange Sells

Stock Exchanges (NYSE, NASDAQ)

• Stocks

• ETFs

• REITs

• Warrants

• Some bonds

Mutual Fund Providers (Fidelity, Vanguard)

• Mutual funds

• Money market funds

• Target date funds

Crypto Exchanges (Coinbase, Kraken, River)

• Bitcoin

• Ethereum

• Digital tokens

• Stablecoins

Crypto trades 24/7, unlike the stock market.

Penny Stocks – Why We Avoid Them

Penny stocks:

• Trade under $5

• Usually on OTC markets

• Low liquidity

• High risk

• Poor financial reporting

• Easily manipulated

They offer hype, not consistency — so we avoid them.

Why We Invest in Stocks

Stocks are long-term wealth creators because they provide:

• Appreciation

• Dividends

• Compound growth

• Liquidity

• Flexibility

• Inflation protection

This is why stocks are the backbone of the Consistent Investor portfolio.

The Consistent Investor Approach

50% Income

• Dividend stocks

• REITs

• Income ETFs

35% Growth

• Strong companies with long-term upside

15% Speculation

• Bitcoin

• Ethereum

• MSTR

• Innovation plays

How I choose investments

I ask:

• Is the company profitable?

• Does it have strong financials?

• Does it pay consistent dividends (if income bucket)?

• Does it show real long-term growth potential?

• Is the risk appropriate for the 15% bucket?

• Does it fit the 50/35/15 structure?

This keeps me steady, disciplined, and confident in every market cycle.

Closing Thoughts

Understanding how exchanges, brokerages, public companies, dividends, and crypto platforms work gives you clarity and confidence as an investor.

The more you know the system, the more consistent your wealth becomes.

Consistency. Cash flow. Growth.

— Samuel
MoveOn LLC

https://MoveOnLLC.com

Disclaimer

This letter is for educational purposes only and not financial, tax, or legal advice. Always do your own research or consult a qualified professional before investing.