Stock Exchange

Question

Stock Exchange

An exchange is a market where securities are traded. Stocks of both public and government-owned, companies are traded in the exchanges.

Zerodha (Trade with the best stock broker)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

Answer 1 · 2019-02-24

A stock exchange or share market is a place where buying and selling of securities take place. Companies get their shares listed on the exchange through IPO. Once the shares are listed they are available for trading. Investors access the exchange through a share brokerage company. They can buy and sell shares using their trading account.

There are around 28 exchanges in India. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are the largest exchanges of the country.

What are the functions or role of a Stock Exchange?

Provide a platform for trading of shares
Helps in the pricing of securities based on demand and supply
Ensures the safety of transactions
Ensure regulatory compliance in a trading

Stock Exchange

What are the functions or role of a Stock Exchange?

Zerodha (India's Best & No. 1 Broker)

Special Offer - Free Equity Delivery and Mutual Funds

Comments

More General Stock Market Terms / Definitions ...