What is Stock Exchange?
Stock Exchange What is Stock Exchange? A stock exchange is a centralized, regulated marketplace where buyers and sellers trade financial instruments—primarily shares of publicly listed companies, as well as bonds, exchange-traded funds (ETFs), and derivatives. It is that type of organized fund market where sellers & buyer sell there shares through stock brokers to others or each other. It is also called as stock market. It functions like an auction house: companies list their shares to raise capital from the public, and investors trade those shares among themselves. Primary Functions Capital Formation: Enables companies to raise money for expansion by issuing shares to the public through an Initial Public Offering (IPO). Liquidity: Ensures investors can quickly convert their shares into cash at fair market prices without disrupting the underlying business. Price Discovery: De...
