Stock Exchange is secondary Market where continuous trading in securities takes place. Securities of a company first become available on an exchange after the company conducts its initial public offering. A company sell its securities in initial set of investor in the primary market. These securities can be selling and purchased in the stock exchanges.
A stock exchange may be defined or described in different ways:-
- A controlled market for buying and selling stocks where prise is determined through supply – demand mechanism.
- An organised market place for securities featured by the centralization of supply and demand for the transaction of orders by member brokers for institutional and individual investors.
- Stock exchange means anybody of individuals where incorporated or not constitute for the purpose of assisting, regulating or controlling the business of buying, selling or dealing securities.
- In a stock exchange the trading in listed securities is carried out by qualified member who may act either agent for their own accounts.