A Stock Exchange is the place where "Trading operations" are performed which operates with the support of the Stock Brokers and Traders to trade on the Shares and Commodities.
These exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends.
The securities traded on exchange include:
SHARES issued by companies,
UNIT TRUSTS and DERIVATIVES
Pooled Investments products and Bonds.
To be cope up with trading, a security is present on the Stock Market that has to be listed there. Generally there is a central location for recordkeeping and it has connected with the electronic Networks which gives the speed and accuracy to the various transactions.Trade is done by the members on the exchange only.
The initial offering of stocks and bonds is for the Investors.This is to be done in the primary market and further the trading is done in the Secondary market.
MAJOR EXCHANGES OF THE WORLD:-
Following are some of the major exchanges of the World
1. NewYork Stock exchange
2. Tokyo Stock Exchange
3. NASDAQ
4. NSE
5. London Stock Exchange
6. Shanghai Stock Exchange
7. Australian Securities Exchange
8. Hong Kong Stock Exchange
9. BSE
10.Swiss Exchange
Along with them, there are some of the regional Exchanges In different Countries but they are not so much popular for the Stock Brokers and the Shareholders.