All about stock exchange that you want to know
The stock exchanges are the places where the traders and stock brokers can buy or sell the stocks of different companies. These stocks are known by the name of shares. There are many other financial instruments such as securities that can be issued and redemptions can be made.
The stock exchanges are not a new thing. Even in the 11th century AD in France there were agricultural commodities that were traded and the transactions were regulated by the officials appointed for this purpose.
These days there are several big stock exchanges from where the world economy and its direction gets regulated. The transactions or exchange of the shares happens in two ways- on the floor and electronically
On the floor exchanges are the physical changes.
Electronic exchanges are the exchanges that happen over the electronic media and this may happen anywhere in the world.
Before any company’s shares can be exchanged it has to get listed with a stock exchange. For this listing there a few criteria that they need to fulfil such as minimum
- number of share
- amount of market capitalization
- annual revenue generated by the company
If your company is a small one you will be listed with one stock exchange only but f the company is a giant then they may be listed with several stock exchanges in the world.
The trading hours
For all the stock exchanges there are trading hours during which the exchanges and transactions can be made. Beyond this time no transactions are allowed.