Characteristics of Stock Exchange.

December 22, 2020 By Swapnil Suryawanshi

stock exchangesecurities exchange, or bourse is a facility where stockbrokers and traders can buy and sell securities, such as shares of stockbonds, and other financial instruments. Stock exchanges may also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividends. Securities traded on a stock exchange include stock issued by listed companiesunit trustsderivatives, pooled investment products and bonds. Stock exchanges often function as “continuous auction” markets with buyers and sellers consummating transactions via open outcry at a central location such as the floor of the exchange or by using an electronic trading platform.

What are the characteristics of stock exchange :

4 Main Features of Stock Exchange

  • (1) Organised MarketStock exchange is an organised market. …
  • (2) Dealings in Securities Issued by Various Concerns: Only those securities are traded in the stock exchange which is listed there. …
  • (3) Dealing only through Authorised Members: ADVERTISEMENTS: …
  • (4) Necessary to Obey the Rules and Bye-laws:

Courtyard of the Amsterdam Stock Exchange (or Beurs van Hendrick de Keyser in Dutch), the world’s first formal stock exchange. The first formal stock market in its modern sense, was a pioneering innovation by the VOC managers and shareholders in the early 1600s

What are the main functions of stock exchange :

9 Most Important Functions of Stock Exchange/Secondary Market

  • Economic Barometer:
  • Pricing of Securities:
  • Safety of Transactions:
  • Contributes to Economic Growth:
  • Spreading of Equity Cult:
  • Providing Scope for Speculation:
  • Liquidity:
Stock market index - Wikipedia

Stock exchange - Wikipedia

Early history :

The term bourse is derived from the 13th-century inn named “Huis ter Beurze” (center) in Bruges. From Dutch-speaking cities of the Low Countries, the term ‘beurs’ spread to other European states where it was corrupted into ‘bourse’, ‘borsa’, ‘bolsa’, ‘börse’, etc. In England, too, the term ‘bourse’ was used between 1550 and 1775, eventually giving way to the term ‘royal exchange’.

There is little consensus among scholars as to when corporate stock was first traded. Some see the key event as the Dutch East India Company‘s founding in 1602.

External links :

Look up bourse or human exchange in Wiktionary, the free dictionary.
Wikimedia Commons has media related to Stock exchanges.