Essay On Stock Exchange

A stock is a certain type of security that shows ownership of a particular company and gives the holder a claim to a part of the company’s assets. A share is a stock of a specific company. The word stock is used when referring to shares of multiple different companies whereas the word shares is used when referring to a specific share of a company. An exchange is the marketplace where the stocks, bonds, and other types of financial things are traded. This is the “place” where the stock buyers connect with the sellers. There are many different ways to exchange stock.

One way is through an auction exchange. For this exchange the specialists (a human intermediary) have to be physically present on the stock exchange trading floor. Each of the specialists specialize in a specific type of stock and buy and sell the stock during the auction. The New York stock exchange is most famous for such auctions. However, the auction based stock exchange is in competition with the electronic stock exchanges. An electronic stock exchange is exactly what it sounds like, It is a stock exchange wher...