A stock exchange is a marketplace where stocks of publicly traded companies are bought and sold. The exchange acts as a facilitator for the issuance and trading of securities. It provides a platform for companies to raise capital by issuing and selling stocks, and it allows investors to buy and sell those stocks.
Some of the well-known stock exchanges around the world include the New York Stock Exchange (NYSE), the NASDAQ, the London Stock Exchange (LSE), and the Tokyo Stock Exchange (TSE). Stock exchanges have strict listing requirements and enforce regulations to ensure the transparency and fairness of transactions.
In addition to stocks, many exchanges also trade other securities such as bonds, derivatives, and exchange-traded funds (ETFs). The prices of the securities traded on a stock exchange are determined by supply and demand dynamics in the market, and are influenced by various factors such as economic data, company-specific news, and global events.