What Is a Stock Exchange?

Stock Exchange

*Definition-

stock exchange, share market, or bourse is a place where people meet to buy and sell shares of company stock. Some stock exchanges are real places (like the New York Stock Exchange), others are virtual places (like the NASDAQ).

What Is a Stock Exchange?

As the stock market simply because these highly regulated entities is now dominated by electronic trading is likely to be a physical space as a virtual one.

The stock exchanges listed in the United States are the New York Stock Exchange (NYSE) and Nasdaq. The NYSE is at the top threshold and requires companies to maintain a share price of at least $ 4. Know about Long-term stocks.

Nasdaq was the first electronic exchange allowing investors to buy and sell shares electronically, without a trading floor. Companies that are selling shares to the public market for the first time with an initial public offer (IPO) are most likely to use Nasdaq. The letter is an abbreviation for the National Association of Merchants Automated Quotations.

These OTC stocks traded generally small (and risky) do not meet the listing requirements of such penny stocks that established exchanges will involve companies.

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How a Stock Exchange Works

When raises capital by a business issuing shares, owners of the new shares you want to sell your shares any day. Without a stock market, the owners’ friends, will have to find a buyer by going to members of the family, and community. Exchange it easy What makes finding a buyer is known as the secondary market.

With the stock market, you will never know the person on the other end of your business. It can be half a retired teacher worldwide.

It works like an auction and exchange trader, while those who believe it will spoil the bidding down to the price, who believe a company will perform well. Buyers want the lowest price they can then they can sell later for a profit, while sellers are usually looking for the best price.

Notable Happenings

Met a group of New York City outside of 68 Wall Street under a Buttonwood tree 17 May, 1792, the 24 stock brokers in the United States. They signed effective, the New York Stock & Exchange Board now famous Buttonwood Agreement, which went planned manner (NYSEB).

Nearly three quarters of a century later, in 1863, the NYSEB was officially granted to the New York Stock Exchange. These days, most people call the NYSE itself.

At one time, the American regional stock exchanges in the country were endowed were major centers for their particular part. In San Francisco, for example, the open outcry system where brokers local investors for the Pacific, which would handle purchase orders or buy their own did not want to end up and sell.

Most of them were shut down, bought, absorbed, or increase the microchip, which made the following and more efficient one in Zurich by an investor as well as ease of California that the electronic network to find may sell its share liquidity Merged.

Stock Exchanges Around the World

Exchange NameLocation 
New York Stock Exchange New York City 
NasdaqNew York City 
Tokyo Stock Exchange / Japan Exchange Group Tokyo, Japan
Shanghai Stock ExchangeShanghai, China
Hong Kong ExchangeHong Kong
EuronextFrance, Portugal, Netherlands, Belgium
Shenzen Stock ExchangeShenzen, China
London Stock Exchange GroupUK, Italy
TMX Group Toronto, Canada
BSE India Ltd. Mumbai, India

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