What Is A Stock Exchange?

A stock exchange is also known as the share market or the bourse is mutual organization or a corporation which mainly provides facilities for stock brokers and for various traders. A stock exchange helps traders or members to trade company stocks and various other securities. Stock exchange also provides various facilities for the issue and redemption of different securities.

Stock exchanges are very important for the countries as they are responsible for the multiplication of the economy in the country, this can also include raising capitals for businesses, Facilitating Company Growth, Mobilizing Savings for Investment. They are also responsible for the redistribution of the wealth and for the corporate governance. The stock exchange is also responsible for creating investment opportunities for many small investors from different fields.

Stock exchange is a place where shareholders of a company buy or sell shares of the companies.
One can also buy shares if he has no shares at all.
Shares are priced according to performance , future plans and scope of the company and also the market sentiment i.e. what people think of the company ?, and also demand and supply gap.