Howdy Wall St. Willy! I read about a stock exchange in the newspaper. But what is a stock exchange anyway?
Well, a stock exchange is a place where stocks and other kinds of securities are traded, which means they are bought and sold.
Can a bond be bought and sold in a stock exchange?
Yes, surprisingly they can be bought and sold at a stock exchange.
Well, can I buy and sell stocks at a stock exchange?
No. Only members of the stock exchange like stock brokers and traders can buy and sell stocks at a stock exchange.
Can I buy and sell any stock in any stock exchange?
No. Only the securities that are listed on the stock exchange can be traded in that stock exchange. The securities can be listed after a company’s IPO or Initial Public Offering.
What are the major stock exchanges around the world?
The major stock exchanges in the US are the NYSE and the Nasdaq.
But other stock exchanges around the world are the Tokyo stock exchange, the London stock exchange, the Euronext stock exchange and the Singapore stock exchange.
Well, can stocks only be traded on a stock exchange? Or can they be traded by other means?
There are now other avenues to buy and sell stocks and bonds like Electronic Communication Networks. But that’s a topic for another time.
Thank you very much for telling me about a stock exchange, Wall St. Willy.
You are welcome, Sooper Cooper. Remember, Finance is Your Friend!
Podcast: What is a Stock Exchange
Everything you need to know about stock exchanges: What is a Stock Exchange, can bonds also be bought and sold at a Stock Exchange, can you buy and sell stocks in a stock exchange yourself, can you buy and sell any stock in any stock exchange, what are the major stock exchanges around the world, can stocks only be traded on a Stock Exchange, and more.
Show notes and transcript at: What is a Stock Exchange?