What is an exchange?

An exchange is an organization that has the rights of a legal entity and conducts public, public tenders according to the rules established for the early rules for all participants at a specified place and a specific time.

What is an exchange? Simply put, the exchange is a trading platform where a seller and a buyer of a certain product meet, given the conditions for selling. At the exchange there are employees - exchange intermediaries (brokers, dealers, brokers). Without their participationthe work of the exchange would not be feasible.

What is a stock exchange

The stock exchange is a specialized institution,which is necessary to create the condition of a permanent centralized trading in securities (shares) in order to combine the demand and supply for them, provide them with a place in systems and facilities for primary placement, and also for the secondary circulation of securities that will have to work according to rules and technology electronic circulation of securities.

The stock exchange is necessary for servicing the secondary securities market, where previously issued shares and bonds are traded.

Why does the exchange

  • to mobilize temporarily free funds;
  • establish the market price (rate) of securities;
  • carry out the movement of capital between industries.

The exchanges perform the following operations

  • organization and holding of trades;
  • listing (a set of procedures for the introduction ofregister of the organizer of securities trading and control over the similarity of securities and the issuer, the requirements and conditions established in the rules of the organizer of trade) and delisting (the procedure for the withdrawal of securities from the register of the trade organizer, when they do not comply with the established trade rules, with subsequent suspension of their circulation and trade, as well as movement to the category of securities, are admitted to circulation but without inclusion in the trade register) of securities;
  • admission to exchange trading of members of the stock exchange and other persons determined by law;
  • promulgation of exchange rate and quotations of securities;
  • opening of information on the activities of the stock exchange;
  • resolution of disputes and other disagreements between the participants of the stock exchange and other persons who can take part in exchange trades in accordance with the current legislation;
  • execution of control over observance of the stock exchange rules by participants and other persons who can participate in exchange trades in accordance with the current legislation;
  • imposing sanctions for violating the rules of the stock exchange.

Principles of work of the stock exchange

  • checking the reliability and quality of securities;
  • setting on the basis of auction trading one course on the same securities of one issuer;
  • publicity of exchange transactions.

Stock exchange functions

  • opens access for enterprises to credit non-bank capital;
  • coordinates and places government securities;
  • ensures the transfer of financial capital from one field of activity to another;
  • establishes market relations regarding the circulation of financial instruments.

The exchanges are divided into

  • stock;
  • commodity (commodity-raw materials);
  • currency.

According to the principle of organization, there are three types of exchanges:

  • public-legal - state exchanges, common in Europe;
  • private-law - private exchanges inherent in the United States, England;
  • mixed - the most widespread among stock exchanges.

Legal status of the exchange

The exchanges are registered as joint-stock companies or as limited liability companies.

The form of participation of visitors in the auction. By this feature, the exchanges are distinguished:

  • closed
  • open

The nature of the conclusion of transactions. By this feature, the stock exchanges are:

  • futures
  • optional
  • real goods
  • mixed.

Blue chips

Want to start trading on the exchange, but do not know withWhat to start with? the exchange gives the opportunity to trade via the Internet. The most liquid instruments are futures and blue chips (the most liquid stocks). For trading, you will need to sign an agreement with a brokerage company, open an account in securities and receive a trading program from it, through which you can trade via the Internet.



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