What Is Stock Exchange? Pregnant Definitions As Well As Features

What is Stock Exchange? Meaning

Stock Exchange (also called Stock Market or Share Market) is 1 of import cistron of blogspot.com//search?q=what-is-capital-market-meaning">capital market. Stock Exchange is an organized marketplace for the purchase in addition to sale of industrial in addition to fiscal security. It is convenient house where trading inwards securities is conducted inwards systematic agency i.e. equally per sure as shooting rules in addition to regulations.

It performs diverse functions in addition to offers useful services to investors in addition to borrowing companies. It is an investment intermediary in addition to facilitates economical in addition to industrial evolution of a country.

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Stock telephone substitution is an organized marketplace for buying in addition to selling corporate in addition to other securities. Here, securities are purchased in addition to sold out equally per sure as shooting well-defined rules in addition to regulations. It provides a convenient in addition to secured machinery or platform for transactions inwards unlike securities. Such securities include shares in addition to debentures issued past times populace companies which are duly listed at the stock exchange, in addition to bonds in addition to debentures issued past times government, populace corporations in addition to municipal in addition to port trust bodies.

Stock exchanges are indispensable for the smoothen in addition to orderly surgical physical care for of corporate sector inwards a gratuitous marketplace economy. Influenza A virus subtype H5N1 stock telephone substitution involve non last treated equally a house for speculation or a gambling den. It should human activity equally a house for condom in addition to profitable investment, for this, effective command on the working of stock telephone substitution is necessary. This volition avoid misuse of this platform for excessive speculation, scams in addition to other undesirable in addition to anti-social activities.

London stock exchange (LSE) is the oldest stock telephone substitution inwards the world. While Bombay stock exchange (BSE) is the oldest inwards India. Similar Stock exchanges be in addition to operate inwards large bulk of countries of the world.

Definitions of Stock Exchange

According to Husband in addition to Dockerary,

"Stock exchanges are privately organized markets which are used to facilitate trading inwards securities."

The Indian Securities Contracts (Regulation) Act of 1956, defines Stock Exchange as,

"An association, organization or trunk of individuals, whether incorporated or not, established for the purpose of assisting, regulating in addition to controlling concern inwards buying, selling in addition to dealing inwards securities."

Features of Stock Exchange

Characteristics or features of stock telephone substitution are:-

1. Market for securities : Stock telephone substitution is a market, where securities of corporate bodies, authorities in addition to semi-government bodies are bought in addition to sold.
2. Deals inwards minute manus securities : It deals amongst shares, debentures bonds in addition to such securities already issued past times the companies. In curt it deals amongst existing or minute manus securities in addition to therefore it is called secondary market.
3. Regulates merchandise inwards securities : Stock telephone substitution does non purchase or sell whatever securities on its ain account. It exactly provides the necessary infrastructure in addition to facilities for merchandise inwards securities to its members in addition to brokers who merchandise inwards securities. It regulates the merchandise activities so equally to ensure gratuitous in addition to fair trade
4. Allows dealings solely inwards listed securities : In fact, stock exchanges hold an official listing of securities that could last purchased in addition to sold on its floor. Securities which produce non figure inwards the official listing of stock telephone substitution are called unlisted securities. Such unlisted securities cannot last traded inwards the stock exchange.
5. Transactions effected solely through members : All the transactions inwards securities at the stock telephone substitution are effected solely through its authorised brokers in addition to members. Outsiders or straight investors are non allowed to motion into inwards the trading circles of the stock exchange. Investors convey to purchase or sell the securities at the stock telephone substitution through the authorised brokers only.
6. Association of persons : Influenza A virus subtype H5N1 stock telephone substitution is an association of persons or trunk of individuals which may last registered or unregistered.
7. Recognition from Central Government : Stock telephone substitution is an organised market. It requires recognition from the Central Government.
8. Working equally per rules : Buying in addition to selling transactions inwards securities at the stock telephone substitution are governed past times the rules in addition to regulations of stock telephone substitution equally good equally SEBI Guidelines. No departure from the rules in addition to guidelines is allowed inwards whatever case.
9. Specific location : Stock telephone substitution is a item marketplace house where authorised brokers come upwards together daily (i.e. on working days) on the flooring of marketplace called trading circles in addition to deport trading activities. The prices of unlike securities traded are shown on electronic boards. After the working hours marketplace is closed. All the working of stock exchanges is conducted in addition to controlled through computers in addition to electronic system.
10. Financial Barometers : Stock exchanges are the fiscal barometers in addition to evolution indicators of national economic scheme of the country. Industrial increment in addition to stability is reflected inwards the index of stock exchange.

Articles on Stock Exchange

Read to a greater extent than related articles on stock exchange:-

1. blogspot.com//search?q=what-is-capital-market-meaning">Functions of stock exchange.
2. blogspot.com//search?q=what-is-capital-market-meaning">Services of stock exchange.
3. blogspot.com//search?q=what-is-capital-market-meaning">Stock telephone substitution transactions terms.
4. blogspot.com//search?q=what-is-capital-market-meaning">Various stock exchanges inwards India.
5. blogspot.com//search?q=what-is-capital-market-meaning">Role of stock exchanges inwards working capital missive of the alphabet market.
6. blogspot.com//search?q=what-is-capital-market-meaning">Role functions of SEBI inwards monitoring stock exchange.