What is the Stock Exchange, how does it work?

What is the stock market?

A stock Exchange is a centralized market place where financial products, called ” financial instruments or securities such as stocks, mutual funds, currencies, bonds and derivatives. It is also a computerized place where the securities of listed companies are exchanged in real time with permanent evaluations according to supply and demand.

The supply comes from companies or states that need financing, while the demand comes from individual investors, companies or states. Stock exchanges differ from other stock exchanges in that tradable assets are limited to stocks, bonds and ETPs (Exchange Traded Product).

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There are many stock exchanges in the world. Some of the largest are the New York Stock Exchange (NYSE), NASDAQ, and the Tokyo Stock Exchange (JPX). Among other well-known stock exchanges, we find the London Stock Exchange (LSE), the Shanghai Stock Exchange (SSE) and the Bombay Stock Exchange (BSE).

Find out more about the opening and closing times of the world stock exchanges

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