Business, Legal & Accounting Glossary
A stock exchange is the setting where investors meet to trade stocks. Exchanges also provide the technology needed to settle trades and ensure liquidity. While stock exchanges used to always be physical places, they are increasingly becoming virtual.
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.
International exchanges are located in most major cities in Canada, Mexico, Europe, Asia, and South America. Africa? Australia?
Traditionally buy and sell orders were matched on an exchange by the specialist. Increasingly orders are being matched electronically.
American Stock Exchange
Annual performance of stock markets
ECN
Exchange
Nasdaq
New York Stock Exchange
A stock exchange is the setting where investors meet to trade stocks. Exchanges also provide the technology needed to settle trades and ensure liquidity. While stock exchanges used to always be physical places, they are increasingly becoming virtual.
International exchanges are located in most major cities in Canada, Mexico, Europe, Asia, and South America. Africa? Australia?
Traditionally buy and sell orders were matched on an exchange by the specialist. Increasingly orders are being matched electronically.
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This glossary post was last updated: 28th November, 2021 | 0 Views.