The Stock Exchanges

The stock exchange can be technically defined as any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the Business of buying, selling or dealing in securities. What got confused..? In simple words, Stock exchange is a place where the exchange of securities takes place. The securities are nothing but Shares, Government Securities, Derivative products, Units of Mutual Funds etc. The stock market ensures transparency involved in the trading. The stock market index is a measure of performance of the economy.

The history of stock exchanges goes back deep in to 11th century. It is believe that the first stock market was established in Cairo, Egypt. From there the stock markets have been evolved and constantly upgraded to match the needs of the various investors. The Amsterdam Stock Exchange is also said to have been the first stock exchange to introduce continuous trade in the early 17th century. The developments in the field of stock exchanges have been remarkable. In the later centuries, the stock markets of the developed economies were famous. Such markets are placed in USA, Germany, UK, France and Japan. Now it’s time for the stock exchanges in the emerging markets such as China, Brazil, Russia, India and South Africa to get flourish. The world’s famous stock exchange is NASDAQ located in Times Square, New York City.

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