What is a Stock Exchange and what happens there ?

Learn about stock Exchange

Imagine a big,

bustling marketplace, but instead of selling fruits and veggies, people are buying and selling pieces of companies. This place is called a stock exchange, and it's where stocks and other securities (like bonds or investment funds) are traded. Two of the most famous stock exchanges are the New York Stock Exchange (NYSE) and NASDAQ.

New York Stock Exchange (NYSE):

It's like the grand plaza of finance and is located in New York City. Companies from all over the world list their stocks here. It's a physical place where trading happens on a trading floor through face-to-face interactions.

NASDAQ:

This is more like a high-tech, digital marketplace. It doesn't have a physical trading floor; instead, all trading is done electronically via a network of computers. NASDAQ is known for having a lot of technology companies, like Apple and Google.

London Stock Exchange (LSE):

Based in the UK, it's one of the oldest and largest exchanges in the world.

Shanghai Stock Exchange (SSE):

A major exchange in China, reflecting the rapid growth of the Chinese economy.

Tokyo Stock Exchange (TSE):

The largest in Japan, representing major Japanese businesses and playing a crucial role in Asia's economy.

Bombay Stock Exchange (BSE):

Established in 1875, BSE is one of Asia’s oldest stock exchanges. It's located in Mumbai, India, and plays a crucial role in the Indian financial market. With thousands of listed companies, the BSE is pivotal in helping Indian companies access equity capital by providing a regulated market for trading shares.

Singapore Exchange (SGX):

SGX is a more modern, international exchange that provides services in equities, fixed income, derivatives, and commodities trading. It is noted for its blend of Asian and international companies, making it a global hub for investors seeking to tap into both regional and international markets.

these exchanges help companies get the money they need to grow by allowing them to sell shares to the public, and they allow investors a place to buy and sell these shares.