The stock market represents the companies that list equity shares for public investors to buy and sell. Stock exchanges are the infrastructure that facilitate the trading of those equity securities, or stocks. Without a stock exchange, companies would have no formal mechanism on which to list shares, and without a stock market, exchanges would have no reason to exist. Stock exchanges can be electronic or manual, and they provide telling information about the size of the stock market. The stock exchange is an important component of the stock market. Stocks that are sold in the stock market are listed in stock exchanges in relation to the country in which the stock are sold, such as the NYSE (New York Stock Exchange). While the stock market is the general term that explains all platforms on which stocks are traded in an organized manner, a stock exchange is only an organization that promotes stock trading through the varieties of services offered to facilitate trade. Since stock exchanges are formed by companies, they are operated under a profit motive through providing opportunities for stock trading, whereas stock markets do not operate under any profit motive and are only facilitation for trade to take place.
Posted on: Mon, 18 Aug 2014 02:58:32 +0000
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