STOCK EXCHANGE

Stock exchanges are the most important segment of the secondary market where securities are traded. Securities markets are places where securities, stocks, shares and bonds of all types are bought and sold. Here, the constantly changing forces of supply and demand set quotations for the issue of shares. The buyers and sellers meet for their mutual advantages, enjoying the facilities of a well-organised marketplace. These are highly organised markets in existence where a formal mechanism exists for bringing buyers and sellers together directly or through their representatives. They provide a central trading place at which groups of brokers and dealers meet regularly and transact business with one another for their customers and their own accounts.