A stock exchange is a specific place where trading of the securities is done in an organized method.
The term securities include equity shares, preference shares, debentures, government bonds, mutual funds, etc.
In simple words, the Stock Exchange is a place securities are purchased and sold.
The stock exchange is also referred to as ‘Stock Market’, ‘Share Market’, ‘Share Bazaar' or 'Securities Market'
The stock exchange is like a commodity market where securities are bought and sold
The important features of a stock exchange are:
1. The stock exchange is a place where buyers and sellers of securities meet and decide on a price.
2. The stock exchange is a place where stocks or all types of securities are traded.
3. The stock exchange is at a physical location, where transactions are carried out on a trading floor. However, after the arrival of the internet, trading these days happen on online trading platforms and not on a trading floor.
4. The purpose of a stock exchange or stock market is to facilitate the exchange of securities between buyers and sellers, thus reducing the risk.
A stock exchange provides a platform or mechanism to the investors to purchase or sell the securities of the Companies, Government or Semi-Government institutions.
The term securities include equity shares, preference shares, debentures, government bonds, mutual funds, etc.
In simple words, the Stock Exchange is a place securities are purchased and sold.
The stock exchange is also referred to as ‘Stock Market’, ‘Share Market’, ‘Share Bazaar' or 'Securities Market'
The stock exchange is like a commodity market where securities are bought and sold
The important features of a stock exchange are:
1. The stock exchange is a place where buyers and sellers of securities meet and decide on a price.
2. The stock exchange is a place where stocks or all types of securities are traded.
3. The stock exchange is at a physical location, where transactions are carried out on a trading floor. However, after the arrival of the internet, trading these days happen on online trading platforms and not on a trading floor.
4. The purpose of a stock exchange or stock market is to facilitate the exchange of securities between buyers and sellers, thus reducing the risk.
A stock exchange provides a platform or mechanism to the investors to purchase or sell the securities of the Companies, Government or Semi-Government institutions.
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