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Stock Exchange

A stock exchange is a market where investors and traders buy and sell certain securities including stocks, bonds, and exchange-traded products. It is important to note that stock exchanges do not own shares.

These days, stock exchanges are fully digitized with all trades taking place on electronic platforms. Hence, there is no need for a centralized physical location for trades.

For a company to be listed on a stock exchange, it must first satisfy certain minimum standards. In the US a company that wants to have its shares listed on the stock exchange must first be registered with the Securities and Exchange Commission (SEC).

The New York Stock Exchange (NYSE) is the largest stock exchange in the world. 

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Author: Mircea Vasiu Updated: July 8, 2022