Stock Exchange

A stock exchange is a centralized location where the shares of publicly traded companies are bought and sold. In addition, financial assets like bonds, ETFs, and Financial derivatives are also traded on a stock exchange.

A stock exchange brings together buyers and sellers, enabling them to exchange securities. Securities include shares, bonds, investment trusts, and exchange-traded funds. Participants in a stock market include individuals, corporates, institutional investors, etc. Institutional investors mean fund managers, insurance companies, banks, and pension funds. An institutional investor could be a domestic or foreign institution.

Stock Exchange: As per the Securities Contracts (Regulations) Act

According to the Securities Contracts (Regulation) Act 1956, a stock exchange means a body of individuals, whether incorporated or not, constituted to assist, regulate, or control the business of buying, selling, or dealing in securities.