Stock Exchange

Stock Exchange is an organization / marketplace, for the sale and purchase of shares and other securities.

Stock Brokers:  Those who trade on stock exchanges.

Bullish market:  Situation when the share prices in the stock exchange are increasing.

Bearish market: Situation when the share prices in the stock exchange are decreasing.

Share: agreement of investment between shareholders and company. Dividends are given to share holders.

Dividends: profits given on shares.

Difference Between Loan and Share:

Role Of Stock Exchange In The Economy:

• It enables Public Limited Companies to raise capital by offering shares to public.
• It enables people to invest money in different companies.
• It determines the level of investment in the country.
• It enables companies to grow externally by merging or taking over another company  (taking enough shares in another company).
• Government, also raises finance by selling securities on the stock exchange.