Quoted Stocks in public companies are usually traded on an exchange. Stock exchanges are regulated venues where prospective buyers and sellers of Stocks can complete transactions to transfer their interest in a stock. The mechanisms that control the process of buying and selling are similar to an auction where buyers will bid at a given price to acquire Stocks and sellers will offer them.
An exchange is not strictly required for buyers and sellers of Stocks, however, they offer standardised contractual obligations on both parties which make the process simpler (and usually more cost-effective as a result).
If a stock can be bought and sold on a give exchange, it is described as having a 'listing'.
Larger stock exchanges might also list other securities such as bonds, covered warrants and investment trusts.
Contributed by: Ralph Windsor
An exchange is not strictly required for buyers and sellers of Stocks, however, they offer standardised contractual obligations on both parties which make the process simpler (and usually more cost-effective as a result).
If a stock can be bought and sold on a give exchange, it is described as having a 'listing'.
Larger stock exchanges might also list other securities such as bonds, covered warrants and investment trusts.
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