8 Features of Stock Exchange

A stock exchange is an organized market where securities are purchased and sold. In a stock exchange, transactions take place between the members or their authorized agents on behalf of the inventors. The following are the distinctive features of the stock exchange.

Features of stock exchange

  1. Securities are the trade in a stock exchange in a systematic manner for investment and speculation.
  2. Securities refer to shares, stocks, debentures, and government bonds.
  3. Only listed securities are traded in a stock exchange.
  4. Securities issued by governments, public companies, public utility concerns; public corporations, etc, are bought and sold on the floor of a stock exchange.
  5. It is usually established as a joint-stock company with limited liability.
  6. It is managed by the board of directors elected by the shareholders.
  7. It functions on the basis of certain rules and bylaws of the concerned stock exchange.
  8. It brings together a huge amount of capital necessary for the economic progress of a country.
Features of Stock Exchange
Features of Stock Exchange

4 major features of stock exchange

Along the way, below I’m explaining to you 4 major features of the stock exchange:

1. Organized Market: The stock exchange is not an orderly market. Every stock exchange has an administration committee, which has all the rights associated with the management and control of the transaction. All the transactions taking station in the stock exchange are done as per the prescribed procedure under the guidance of the management committee.

2. Dealings in Securities Delivered by Various Companies: Only those securities are purchased marketplace the stock exchange which is listed there. After filling certain terms and limitations, security gets placed on the stock exchange.

3. Dealing only with Authorized Members: Investors can sell and acquire securities in the stock exchange only for the approved members. The stock exchange is a specified marketplace where only the authorized members can go. The investor has to get their help to sell and purchase.

4. Required to Serve the Rules and Bye-laws: While negotiating in the Stock Exchange, it is necessary to obey the laws and bye-laws defined by the Stock Exchange.

Related Content of Stock Exchange:

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to Top
Scroll to Top