Differentiate between dealer markets and stock markets that have a physical location

The physical location exchanges are tangible entities. Each of the larger ones occupies its own building, allows a limited number of people to trade on its floor, and has an elected governing body.

The dealer market system consists of (1) the relatively few dealers who hold inventories of these securities and who are said to "make a market" in these securities; (2) the thousands of brokers who act as agents in bringing the dealers together with investors; and (3) the computers, terminals, and electronic networks that provide a communication link between dealers and brokers.