What Is A Stock Exchange

Almost everyday in the business news whether in TV or in newspapers, we always hear and read the phrase, stock exchange. If you're one of those people who want to venture into the stock market investing, it is important to know the basics of and how it works. In this post, we will be discussing and learning what is a stock exchange.

It is an entity which offers services towards brokers, in this case stock brokers both the traditional ones as well as online-based discount brokers. Additionally, it allows investors to trade securities such as stocks or shares and bonds.

One important job or function of the exchange is to provide the facilities for the purpose of issuing and redemption of the securities mentioned, including the computation of the dividends that is to be paid to the investors.

Among the popular securities commonly traded within the stock exchange are; company stocks or shares, derivatives, unit trusts as well as pooled investments like bonds.

Stock Exchange Explained