STOCK EXCHANGE

Stock exchange was formally known as securities exchange in online stock trades. Stock exchange is a corporation which provides the facility of trading to the brokers and traders to trades different securities or stock in online stock trades market. In online stock trades, stock exchange also support the features of issuance and purchasing of stock and other instruments along with the paying system of dividend and income in online stock trades.
Securities which are use for trading in online stock trades includes, shares which a register companies of online stock trades issue in the market, unit trades, bonds and derivatives. For doing any trading at online stock exchange you have to be listed over there.
Normally for trading, there would be some centralized location for keeping all the records of the listed companies but as today’s era is of electronic networks so the online stock trades is not associated with physical location. This feature of online stock trades provides the options of speed and transactional cost.
In online stock trades, at the initial stage, trading is done in primary market and after wards all trading take place in secondary market. Stock exchange is considered the most important part of the online stock trades market.
It is not necessary that stock should be issued through exchange or the trading should be done from the stock exchange, this kind of trading is said to be off the exchange trading. This trading is mostly use in the trading of bonds and derivatives.
Stock exchange of online stock trades play different role in the economy of the country like;
It increases the capital for more business opportunities.
Provide more savings
Facilitates the companies for growing
Provide profit sharing
They are the reason for the better management in the cooperate sector
It provides business opportunities to all investors to any budget level.