Stock Exchanges
Stock Exchanges are mutual organization that facilitates trading of company stocks and securities to the stock brokers and traders. The stock exchanges deals with the issue of securities and other financial instruments. The stock exchanges also involves in the payment of income and dividends. The securities that are traded in the stock exchanges are shares, unit trusts and bonds. There are two kinds of stock markets, the physical market and the virtual market. In the physical market trading takes place through the open outcry system and in the virtual market trading is through the electronic network
The Initial Public Offering of stocks and bonds take place in the primary market although the trading that follow take place in the secondary market. The role of the stock exchange is to raise capital for businesses, mobilize savings for investment, facilitate company growth, redistribute wealth as well as raising capital for financing the development projects of the government.
One may browse through the following links to have a detailed picture of the different stock exchanges of the world:
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