Stock Exchange

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

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?

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