What is Stock Exchange?
A regulated marketplace where securities like stocks and bonds are bought and sold according to specific rules.
A stock exchange is an organized, regulated market where securities such as company shares (stocks), bonds, and other financial instruments are traded. It provides a transparent platform for companies to raise capital from the public and for investors to buy and sell ownership stakes. Prices are determined in real-time by the forces of supply and demand among buyers and sellers.
Major exchanges like the New York Stock Exchange (NYSE) and Nasdaq in the US, or the London Stock Exchange (LSE) in the UK, enforce strict listing and reporting requirements to protect investors. They are central to the functioning of modern capitalist economies, facilitating investment, price discovery, and liquidity.