Hello, In this post we will learn what is stock exchange and what is their role in capital market or you can say stock market?
WHAT IS STOCK EXCHANGE?
According to wikipedia "A stock exchange is an exchange where stock brokers, traders and investors can buy or sell stocks(also called shares), bonds and other securities."
Now as above definition of what an stock exchange is you can simply assume that stock exchanges work just like your near market where you buy some food and other items. For every thing you buy there is a seller who sells the products( in stock exchanges products are stocks,bonds and other securities).
ROLE OF STOCK EXCHANGES
Now as we know what is an stock exchange is , next question generally asked is what is their roles?
So, stock exchanges play many roles in the economy of any country like they help businesses to raise funds through I.P.O.(Initial Public Offer) and are medium to create investments and trading opportunities among us.Exchanges play third party role for every trade that occurs between buyer and seller to make transparency.
MAJOR STOCK EXCHANGES IN INDIA
The major stock exchanges in India are:
- BSE( Bombay Stock Exchange)
- NSE(National Stock Exchange)
- MCX(Multi Commodity Stock Exchange Of India)
- NCDEX(National Commodity And Derivative Exchange)