UK Accounting Glossary
Stock exchanges are responsible for listing and trading the stocks of publicly-owned companies. Stock exchanges may be organized as physical markets where traders are in direct personal contact with each other, such as the floor of the New York Stock Exchange. Entirely electronic stock exchanges such as the Nasdaq National Market may have no central location at all. The primary function of stock exchanges is to match buyers with sellers. Because they are always looking for ways to bring down transaction costs, stock exchanges are often early adopters of advanced technologies.
Trading on stock exchanges is done exclusively by members of the exchange. In addition to trading amongst themselves for their own purposes, exchange members also execute trade requests for the general public.
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This glossary post was last updated: 5th February 2020.