Stock Exchange

A Stock Exchange is a financial market/Exchange (Organized Market) for to stock trades.

• AKA: Equities-based Exchange.
• Context:
  • It can (typically) provides services for stock brokerage firms and financial traders to trade financial assets.
  • It can be a component of a Stock Market.
• Example(s)
  • The New York Stock Exchange[1].
  • NASDAQ http://www.nasdaq.com/
• Counter-Example(s)
  • a Futures Exchange[2].
  • Derivative Exchange.
  • Over-the-Counter Exchange.
• See: Brokerage Firm, Trader (Finance), Stock, Bond (Finance), Security (Finance), Dividend, Unit Trust, Derivative (Finance), Listing (Finance), Primary Market.

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References

• http://en.wikipedia.org/wiki/List_of_stock_exchanges

2014

• (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Stock_exchange Retrieved:2014-7-16.
  • A stock exchange is a form of exchange which provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include stock issued by companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as "continuous auction" markets, with buyers and sellers consummating transactions at a central location, such as the floor of the exchange. To be able to trade a security on a certain stock exchange, it must be listed there. Usually, there is a central location at least for record keeping, but trade is increasingly less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of increased speed and reduced cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets are driven by various factors that, as in all free markets, affect the price of stocks (see stock valuation). There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global market for securities. In recent years, various other trading venues, such as electronic communications networks, alternative trading systems and "dark pools" have taken much of the trading activity away from traditional stock exchanges.

• (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Stock_market#Stock_exchanges Retrieved:2014-7-16.
  • A stock exchange is a place to trade stocks. Companies may want to get their stock listed on a stock exchange. Other stocks may be traded "over the counter", that is, through a dealer. A large company will usually have its stock listed on many exchanges across the world. Market participants include individual retail investors and traders, institutional investors such as mutual funds, banks, insurance companies and hedge funds, and also publicly traded corporations trading in their own shares. Some studies have suggested that institutional investors and corporations trading in their own shares generally receive higher risk-adjusted returns than retail investors. This may be attributable to their tendencies to hold investments for longer periods of time.

2013

• http://www.investopedia.com/terms/e/exchange.asp
  • QUOTE: marketplace in which securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange - such as a stock exchange - is to ensure fair and orderly trading, as well as efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments and other groups a platform to sell securities to the investing public. An exchange may be a physical location where traders meet to conduct business or an electronic platform. May also be referred to as "share exchange" or "bourse" depending on geographical location.

    Exchanges are located all around the globe, with some of the more famous ones being the New York Stock Exchange, Nasdaq and the Tokyo Stock Exchange. More and more trading is being done on electronic exchanges as markets become more advanced and as the exchanges themselves are able to ensure fair trading without requiring all members to be on the same trading floor.
    Each exchange will have certain listing requirements for any company or group that wishes to offer securities for trading. Some exchanges are more rigid than others, but basic requirements for stock exchanges include regular financial reports and audited earnings reports.

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