Valiant Markets | How Does the Stock Exchange Work?

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Stock Exchange
Easy Way to Earn money, Easy Way to loose money
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Stock exchange definition According to the
Security Act , a stock exchange is "an
association, organisation, or individual created
for the purpose of aiding, regulating, and
controlling commerce in buying, selling, and
dealing in securities."
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FEATURES OF STOCK EXCHANGE

• It is a well-organized market.
• It is a market for security.
• It is an essential component of capital markets,
  namely the market for long-term lending.
• It is a non-profit organisation comprised of
  individuals interested in dealing in securities.

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IMPORTANT FUNCTION OF STOCK EXCHNAGE

• Increase the marketability and liquidity of
  securities by providing central and convenient
  meeting venues for sellers and buyers of
  securities.
• Contribute to the stability of security pricing
• The smoothing of price fluctuation is achieved by
  the equalisation of security prices.
• Help capital formation

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Broker He acts as a middleman on behalf of
others. A broker on a stock exchange is a
commission agent who conducts securities business
on behalf of non-members. Jobers He is not
permitted to interact with the general public
directly. He works with brokers who work with
investors. As a result, the jobber purchases
securities from members and sells them to members
who work as brokers on the stock exchange.
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Speculation and Speculator
Speculation A transaction in which members
purchase or sell stocks on a stock exchange in
order to profit from an expected rise or decrease
in the price of securities.

• Speculator A speculator is a stock exchange
  dealer who engages in speculating. They do not
  take delivery of securities acquired or sold by
  them instead, they pay or rescue the difference
  between the buy and selling prices. There are
  several sorts of speculators.
• BULL
• BEAR
• STAG
• LAME DUCK

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