A stock exchange is where buyers and sellers meet to trade shares of publicly listed companies. Orders are matched through electronic systems, ensuring transparency in pricing and execution.
Exchanges set listing standards that companies must meet, including disclosure requirements and governance rules. These standards help build trust, giving investors a clearer view of what they are buying. Well-known exchanges attract global capital and host thousands of listed firms.
Trading hours, settlement systems, and regulation vary by country, but the core function remains the same: to provide a structured marketplace for securities. Indices derived from exchange listings often serve as barometers of economic and market health.
Core functions
- Facilitating buying and selling of shares
- Providing price discovery through open trading
- Enforcing listing and disclosure standards
- Supporting capital raising for companies
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