A stock exchange is a regulated financial market where securities are traded, serving as both a primary market for raising capital and a secondary market for liquidity. It features organized and voluntary trading among members, facilitating the buying and selling of securities while promoting stability and price equalization. Major global stock exchanges include the London, New York, and Shanghai stock exchanges.

1. STOCK EXCHANGE

2. WHAT IS STOCK EXCHANGE?
Organized and regulated financial market where securities (bonds,
notes, shares) are bought and sold at prices governed by the forces
of demand and supply.
Stock exchanges basically serve as:-
(1) Primary markets where corporations, governments,
municipalities, and other incorporated bodies can raise capital by
channelling savings of the investors into productive ventures
(2) Secondary markets where investors can sell their securities to
other investors for cash, thus reducing the risk of investment and
maintaining liquidity in the system.

3. FEATURES OF STOCK EXCHANGE
 It is an organized market
 It is a securities market
 It is an important constituent of capital market i.e., market for long-
term finance
 It is a voluntary association of persons desirous of dealing in
securities
 Stock exchange is a voluntary association, its membership is not
open to everybody
 In a stock exchange, only the members can deal in i.e., buy & sell
securities
 The members of a stock exchange can buy and sell securities either
as brokers for & on behalf of their clients

4. IMPORTANT FUNCTION OF STOCK
EXCHANGE
 Provide central and convenient meeting places for sellers and buyer
of securities
 Increase the marketability and liquidity of securities
 Contribute to stability of prices of securities
 Equalization of price of securities
 Smoothen price movement
 Help the investors to know the worth of their holdings
 Promote the habit of saving and investment
 Help capital formation
 Help companies and government to raise funds from the investors
 Provide forecasting service

5. BROKER AND JOBBER
BROKER: He is one acts as a intermidiary on behalf
of others. A broker in a stock exchange is a commission
agent who transacts business in securities on behalf of
non members.
JOBBER: He is not allowed to deal with the public
directly .He deals with brokers who are engaged with
the investors . Thus, the securities is bought by the
jobber from members and sells to members who are
operating on the stock exchange as broker.

6. Largest stock exchanges
IN THE WORLD
 LONDON STOCK EXCHANGE
 NEW YORK STOCK EXCHANGE
 SHANHAI STOCK EXCHANGE
 AUSTRALIA STOCK EXCHANGE
 TOKYO STOCK EXCHANGE
 HONG KONG STOCK
EXCHANGE
 TORONTO STOCK EXCHANGE
 DEUTSCHE BORSE
 BM&F BOVESPA
 NASDAQ OMX STOCK
EXCHANGE

7. LONDON STOCK EXCHANGE
It was the first stock exchange established by East-
India company in 18th century in London. The top
gainer of LONDON STOCK EXCHANGE is “Blue chip
shares”.

8. HAPPY INVESTMENT WITH LOTS OF PROFITS
THANK YOU
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