INTRODUCTION• A stock exchange is a corporation or mutualorganisation which provides “trading” facilities forstock brokers and traders, to trade stock andother securities.stock exchange also provides facilitiesfor the issue and redemption of securities aswell as other financial instruments and capitalevents including the payment of incomes anddividends.a stock exchange is often the mostimportant components of stock market.
SECURITIES• Security is a fungiable and negotiableinstruments representing financial value.the securities traded on stockexchange includes, shares issued bycompanies and bonds and also mutualfunds.
THE ROLE OF STOCKEXCHANGES• Raising capital for business.• Mobilizing savings for investment.• Facilitating companies growth.• Profit sharing.• Creating investment opportunities for smallinvestors.• Government capital- raising for developmentprojects.• Barometer of the economy.
MAJOR STOCK EXCHANGESIN THE WORLD• There are so many stock exchangesin the world, but the most importantstock exchanges in the world are as:
LONDON STOCKEXCHANGE• It is situated inEurope.• Its market value ism$ 2560491.1.• Its total shareturnover is m$2321518.5.
SAO PAULO STOCKEXCHANGE• It is situated in USA.• Its market value is m$ 1032518.4.• Its total share turnover is m$36195.0.
NEW YORK STOCKEXCHANGE• It is situated inUSA.• Its market value ism$ 10842001.9.• Its total shareturnover ism$12158620.
TOKYO STOCKEXCHANGE• It is situated inJapan.• Its market value ism$ 3478602.5.• Its total shareturnover is m$2675983.3.
AUSTRALIAN STOCKEXCHANGE• It is situated in Australia.• Its market value is m$ 1066513.2.• Its total share turnover is m$560912.8.
HONGKONG STOCKEXCHANGE• It is situated in Singapore.• Its market value is m$1945517.7.• Its total share turnover is m$970227.6.
BOMBAY STOCKEXCHANGE• It is situated in India.• Its market value is m$1082572.0.• Its total share turnover is m$171176.2.
SANGHAI STOCKEXCHANGE• It is situated in China.• Its market value is m$2142756.8.• Its total share turnover is m$3315768.3.
• It is a set of conditions imposed by a givenstock exchange upon companies thatwant to be listed. Such conditionssometimes includes minimum number ofshares outstanding, minimum marketcapitalization, and minimum annualincome.Requirements varies by stockexchange.LISTING REQUIREMENTS