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FEATURES OF STOCK EXCHANGE
▪ Association of persons
Or body of individuals
▪ Recognition from the central government
Stock exchange requires recognition from the Central Government
▪ Market for securities
Securities of public, Govt, corporate bodies are bought or sold
▪ Deals in second-hand securities
Also called secondary market as it also deals in securities that have already been issued
▪ Regulates trade in securities
Provides facility to brokers and members to trade in securities to ensure free and fair trade
▪ Allow dealings only in listed securities
Securities which are listed in stock exchange are called listed securities and only these are
allowed to be traded in stock exchange
▪ Transactions effected through members
Transactions in stock exchange can be made only through authorised brokers or members.

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features stock exchange.pdf

  • 1.
  • 2. FEATURES OF STOCK EXCHANGE ▪ Association of persons Or body of individuals ▪ Recognition from the central government Stock exchange requires recognition from the Central Government ▪ Market for securities Securities of public, Govt, corporate bodies are bought or sold ▪ Deals in second-hand securities Also called secondary market as it also deals in securities that have already been issued
  • 3. ▪ Regulates trade in securities Provides facility to brokers and members to trade in securities to ensure free and fair trade ▪ Allow dealings only in listed securities Securities which are listed in stock exchange are called listed securities and only these are allowed to be traded in stock exchange ▪ Transactions effected through members Transactions in stock exchange can be made only through authorised brokers or members.