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