Describe the traditional method of trading on a stock exchange, and explain how has online trading improved the system of purchase and sale of securities and the settlement of transactions.

The traditional method of trading on a stock exchange has been a vital aspect of the financial market for centuries. This system is deeply rooted in physical trading floors where brokers, agents, and investors conduct the buying and selling of securities such as stocks, bonds, and other financial instruments. The stock exchange, historically, has been a place where these transactions take place face-to-face, relying heavily on human interactions, physical documentation, and manual processes. However, with the advent of technology and the internet, online trading has emerged as a revolutionary method, transforming the way securities are purchased, sold, and settled.

In the traditional method of trading, the process begins when an investor wants to buy or sell a security. Investors would typically contact their brokers to place an order. These brokers, in turn, would travel to the trading floor of the stock exchange, where they would compete with other brokers to execute the trade. The most common way of transacting was through an open outcry system, where brokers shouted orders and prices in a crowded and noisy environment. This was done on a physical trading floor, like the New York Stock Exchange (NYSE) or the London Stock Exchange (LSE), where brokers would gather in specific "pits" designated for particular stocks.

Once the transaction was executed on the floor, the price and the quantity of the securities traded were recorded on paper ledgers. This manual process of executing trades and updating records was highly ________ __________ ______ _____ _________ ___ ________ _________ __________ __________ ________ ________.
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