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STOCK EXCHANGE

MEANING OF STOCK EXCHANGE


The stock exchange is an organized market where the sale and purchase of second-hand securities i.e. shares, debentures, bonds etc take place according to specified rules and regulations. It facilitates the trading of listed securities only. Listed securities are those securities which are recognized by a stock exchange for the purpose of sale and purchase of securities. It provides finance to the government sector. It is an indispensable institution for the steady growth of the corporate sector. It is established for the purpose of assisting, regulating and controlling business in securities. The stock exchange is recognized as a nerve center of the economy of any nation.

According to Bismark,

“If you want to know how the things in Britain are going on, do not study the House of Commons, but watch the London stock exchange.”
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