The most common meaning of the term bag refers to the bag that allows you to store and move different objects inside. However, the concept has other uses. Stock exchange, for example, is the name of an institution in the economy where the sale and purchase of securities takes place.
The notion of stock exchange, therefore, refers to the referred institution. It is an organization that allows its members to conduct negotiations to sell and buy company stocks, bonds and other securities. These transactions are also specified on the stock exchange.
In other words, to purchase a state -issued bond or shares in a particular company, it is necessary to go to the stock exchange. Trading is carried out based on the prices taken as a basis and which vary throughout the day. These fluctuations are known in real time , as the price is the most important information for the investor.
To ensure the transparency and security of operations, the operation of the stock exchange is regulated. Only authorized persons known as brokers or agents may trade or operate on it. If an individual wants to buy or sell shares, he must give the instruction to his broker.
The stock exchange, in short , allows you to convert savings into investment (when someone buys securities) and allows companies to obtain financing (offering their shares so that the public can acquire a stake in their capital). The state can also be financed through the issuance of bonds.
List of Acronyms Related to Stock Exchange