Stock exchange is a type of financial institution. It provides the corporations, companies and governments with the opportunity to generate funds. At the same time, the individual investors also get the chance to invest money in the market and get the advantage of higher returns. In other words stock exchange can be identified as a place where stocks are offered by the companies or government and the same are purchased by the investors. By purchasing the stocks, an investor gets ownership in that particular company. Apart from the stocks, there are several other securities that are also offered through this market.
In the beginning, stock exchanges were run through physical process and all the related works were carried out manually. Those exchanges were termed as physical stock exchange. But at present, the trading in the stock market is done through the online process. The use of the Internet has also improved the operational domain of stock exchanges and the trading processes have gone through a sea change. The open-outcry method exists no more (except in a few exchanges).
A stock exchange can be divided in two separate sections. The first section is known as the primary stock exchange and another one is called the secondary exchange. The primary stock exchange is used by the companies to introduce a stock in the public. The trading of a particular stock is done in the secondary stock exchange. The prices of the stocks are determined by the market.
Functions of Stock Exchange
The stock exchanges perform a number of activities. Some of these important activities are the following:
Generating funds for businesses
Generating funds for development activities of the government
Provides assistance for the development of the companies
Chances of Investment to everyone
Helps in measuring the economic growth
|Major Stock Exchanges of the World|
|Australian Stock Exchange||Johannesburg Securities Exchange|
|Bermuda Stock Exchange||Istanbul Stock Exchange Casablanca Stock|
|American Stock Exchange||Exchange|
|Budapest Stock Exchange||Euronext Paris|
|Bombay Stock Exchange||Euronext Amsterdam|
|London Stock Exchange||Frankfurt Stock Exchange|
|Jakarta Stock Exchange||Karachi Stock Exchange|
|JASDAQ||Korea Stock Exchange|
|Euronext Brussels||Kuwait Stock Exchange|
|Euronext Lisbon Bolsa Mexicana de Valores||Lahore Stock Exchange|
|Helsinki Stock Exchange||Hong Kong Stock Exchange|
|Ghana Stock Exchange|