A stock exchange is an entity that provides trading services and facilitates the buying and selling of shares of stock and other securities between stock brokers and traders. It is considered a vital component of a stock market. A stock exchange allows companies to raise capital by selling shares to investors, mobilizes savings in the economy, and facilitates growth through mergers and acquisitions. It also helps distribute company profits to shareholders and provides opportunities for small investors.

1. STOCK EXCHANGE
Armia P. Leonardo

3. Stock exchange
Refers to an entity which offering trading
services and facilitates for stock brokers and
traders, to buy and sell shares of stock and
other securities.
Considered as one of the most vital
component of a stock market.

4. Difference between:
STOCK MARKET STOCK EXCHANGE
general term which is related to
a place where stocks are traded.
more specific to the place where
the trading is executed, such as BSE,
NSE, NYSE, NASDAQ and so on
you buy and sell shares/equity. you are buying and selling only
those stocks which are listed in the
National Stock Exchange.

5. Terms
Broker – a businessman who buys or sells for another
in exchange for a commission.
Dividends – distribution of a portion of a company's
earnings, decided by the board of directors, to a
class of its shareholders. Dividends can be issued
as cash payments, as shares of stock, or other
property.

6. Role of stock exchanges
1. Raise Capital
2. Mobile Savings
3. Facilitates Growth
4. Distribute Profit
5. Improves Corporate Governance
6. Creates Opportunities for Small Investors
7. Facilitates Raising Capital for the Government
8. Indicator of the Economy

7. Raise Capital
The stock exchange offers
companies with the facility to raise
capital for expansion and other
corporate developmental projects by
selling shares to the investing public.

8. Mobile Savings
Mobilized money adds more
spin or causes multiplier-effect to the
economy by promoting business
activities which benefits several sectors.

10. Facilitates growth
The simplest and the common
way for the company to
step on a takeover bid for merger or
acquisition is through the stock
market.

11. Distribute profit
Profit are being shared
both by ordinary corporate
investors and speculative
investors.

12. Corporate Investors
 who are willing to wait until declaration
of dividends take place.
Speculative Investors
 who are practically in the real trade of
playing with the price.
 who actually in “haul and dump”
business.

13. Creates opportunities
for small investors
Open to both large and small
investors.

14. Facilitates Raising Capital
for the Government
Also serves as one of the
governments avenue to raise funds
through issuance of bonds and other
papers the latter guarantees.

15. Indicator of the Economy
The ugly head of economic
downturn can be spotted right away
in the behavior of the market, this
can be gleaned from the hard figures
in the stock exchange.

16. FINANCIAL PRESS
֎ Refers to newspaper, magazines, TV
channels, broadcast program and other
media specializing in financial news and
updates.
֎ It is important to overall business sector.
֎ It provides an avenue where the
information sources and the information
seekers meet.

17. The end 
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