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What Is A Stock Exchange?

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.
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