A stock exchange is a highly organized market, where listed securities are bought and sold under a code of rules and regulations. In common word definition of the stock exchange is an organized market for the purchase and sale of industrial and financial securities of public companies, government companies, and semi-government bonds.
A stock exchange is also known as a “security exchange” or “security market” or “share bazaar”. It mobilizes small savings for productive purposes. It increases the liquidity of the invested funds by making securities easily transferable.
Definition of the stock exchange
According to Dr. K. L. Garg, “A stock exchange is an association of persons engaged in the buying and selling of shares, stocks, debentures and bounds for the public on commission and are guided by certain rules and usages.”
According to Charles W. Gesternberg, “A stock exchange is an organized auction market where buyers and sellers come together, though their brokers to effect transactions in securities admitted to listing on the exchange and unlisted securities for which a market is maintained.”
According to W. Pyle, “A stock exchange is a market place where securities that have been listed thereon, may be bought and sold for either investment or speculation.”
As a matter of fact, a stock exchange means a body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating, and controlling the business of buying, selling, and dealing in securities.
Related Content of Stock Exchange: