Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

What is stock exchange?
How shares trade on a stock exchange?
Purpose & benefits of a shre exchange
what are the main international share exchange?

Asked by shilpa patil, 17 Sep '08 04:11 pm
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (2)

1.

A stock exchange, share market or bourse is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trad ...more
Answered by masoom raza, 17 Sep '08 08:16 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
2.

When an investor buys a stock of a company, he is called a shareholder or a stockholder of that company. The benefit of buying a share is that when the company profits, the shareholders also profit.

Market price of a stock keeps varying as traders trade the stock in the market.
Stocks are bought at lower market prices and sold at higher prices later. This is referred to as 'long' positions in market terms. Similarly stocks can be sold at a higher market price and bought at a lower price later. This is referred to as 'short' positions in market terms. In these cases, the difference in the market prices at the time of buying and selling will be seen as profit by the traders.

Stock Market s an exchange place or a market that facilitates the trading of stocks.
In India the most famous exchanges or markets are the Bombay Stock Exchange(BSE) and the National Stock Exchange (NSE).

Stock Brokers are members of the Stock Exchanges. Only these members can conduct transactions in t ...more
Answered by Jayakrishnan, 17 Sep '08 04:25 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining

Related Answer

Q.
A

Sorry friend, as I am not an investor in share market, I am not aware of it..more