Stock Exchange

A stock exchange is a highly regulated marketplace where financial securities, primarily stocks, bonds, and other derivatives, are bought and sold. It serves as a crucial intermediary, connecting buyers and sellers and facilitating transparent and efficient transactions. Unlike a physical store, many modern exchanges, like the NASDAQ, operate entirely electronically, leveraging sophisticated technology to match buy and sell orders in real-time.

The primary functions of a stock exchange are multifaceted: it enables companies to raise capital by issuing new shares through Initial Public Offerings (IPOs), provides liquidity to investors by allowing them to easily buy or sell existing securities, and facilitates price discovery through the continuous interplay of supply and demand. Major global exchanges, such as the New York Stock Exchange (NYSE), the National Stock Exchange of India (NSE) here in Mumbai, and the Tokyo Stock Exchange, play a pivotal role in their respective economies. They act as economic barometers, reflecting market sentiment and overall economic health, while also ensuring investor protection through strict listing requirements and regulatory oversight.