Thursday, September 15, 2016

Stock Exchange Definition

Stock Exchange

Stock Exchange is a marketplace where shares/ stocks, bonds and other similar financial instruments are traded. The advent of stock exchanges and listing of companies’ shares on the exchanges brought immense liquidity for the investors. Before coming into existence of stock exchanges investors were stuck with the shares and bonds, as it was very difficult for them to find and reach out to suitable buyers.

The world’s first stock exchange is supposed to be ‘The Amsterdam Stock Exchange’ established in 1602 by the Ditch East India Company, though this disputed by some (source: Wikipedia).

Engraving depicting the Amsterdam Stock Exchange, built by Hendrik de Keyser c. 1612. Artist  Claes Jansz. Visscher, Source: Wikipedia 

In India, during the manual trading days, many regional stock exchanges used to flourish, namely:
  1. Bombay Stock Exchange (BSE)
  2. Delhi Stock Exchange (DSE)
  3. Madras Stock Exchange (MSE)
  4. The Calcutta Stock Exchange (CSE)

The National Stock Exchange (NSE) was established in 1992 which for the first time provided a modern, fully automated screen-based electronic trading system, BSE and other exchanges followed suit and today BSE and NSE are the most popular stock exchanges operating in India.

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