Stock Exchange

Stock Exchange is an organization / marketplace, for the sale and purchase of shares and other securities.

Stock Brokers:  Those who trade on stock exchanges.

Bullish market:  Situation when the share prices in the stock exchange are increasing.

Bearish market: Situation when the share prices in the stock exchange are decreasing.

Share: agreement of investment between shareholders and company. Dividends are given to share holders.

Dividends: profits given on shares.


Difference Between Loan and Share:

Stock Exchange - Difference Between Loan and Share


Role Of Stock Exchange In The Economy:

  • It enables Public Limited Companies to raise capital by offering shares to public.
  • It enables people to invest money in different companies.
  • It determines the level of investment in the country.
  • It enables companies to grow externally by merging or taking over another company  (taking enough shares in another company).
  • Government, also raises finance by selling securities on the stock exchange.


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