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Some people are checking the stock exchange everyday. Why? What job or business they must have been involve in for them to check the status of stock exchange on the daily basis? And I’ve read an article people investing on stock exchange, How does that work? pls. explain
3 Responses to What is the function of the stock exchange?
raysor
November 29th, 2009 at 6:31 am
In its simplest terms the STock Exchange is just that: An exchange (or market) where stocks and shares are traded. Most of the shraes are traded (or held) by institutions. These institutions provide people like you with Pensions, Insurance and other long term financial arrangements. In order to pay for these Pensions when they come to fruition the premiums or contributions have to be invested somewhere where they will grow. This is the stock market.
?
November 29th, 2009 at 7:06 am
Hello,
The core function of an exchange – such as a stock exchange – is to ensure fair and orderly trading, as well as efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments and other groups a platform to sell securities to the investing public.
Are you referring to investing by buying a seat on the exchange? Here is one example: Owning a seat on the New York Stock Exchange (NYSE) enables a person to trade on the floor of the exchange, either as an agent for someone else (floor broker) or for one’s own personal account (floor trader). Prices for seats on the exchange are determined by supply and demand, and they have ranged from $4,000 to over $2,500,000.
Hope this helps!
—
Brad
The Old Guy
November 29th, 2009 at 7:06 am
A stock exchange is an entity that is registered with the Securities & Exchange Commission (SEC) to provide the facilities for its members to trade securities.
The exchange provides a meeting place and the necessary equipment and services for its members to meet for the specific purpose of buying and/or selling securities.
The exchange has as one of its responsibilities, to monitor the activities of its members for strict compliance with, not only exchange rules, but with all the rules and regulations governing broker/dealers.
All the members of the exchange also have their registrations with the SEC
You can not trade on the stock exchange unless you are a member of the exchange,
Many corporations, register with specific exchanges so that their stock can be traded by the exchange members. The exchange monitors such companies for compliance with respect to the filing financial reports and shareholder information.
The general public can not trade on the exchange, they must go to broker/dealers who have exchange memberships to do their buying and selling.