Explain the differences among dealer-broker networks, alternative trading systems, and registered stock exchanges.

A dealer-broker networks means that the broker and dealer is a counterpart in all trades,the broker dealer buys stocks from a seller and sells them to a buyer.

Some trading avenues in which broker and dealer is no longer a counterpart in all trades instead buyers can trade directly with sellers is called an Alternative Trading Systems. Broker dealer must register an Alternative Trading Systems with Securities and Exchange Commission (SEC) which imposes more regulatory requirements than the standard broker dealer network. It is costly for broker-dealer to provide the infrastructure for an Alternative Trading Systems, therefore they charged subscription fees.

Registered stock exchanges are registered with Securities and Exchange Commission (SEC), they are more regulated than Alternative Trading Systems and broker dealer network and its major objectives is to promotes orderly trading and fair dissemination of information including price and number of shares and pre-trade information.

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.