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STOCK EXCHANGE
A
scholarship, meaning the Economic and Financial
Committee, is an institution, private or public, to engage
in trade of goods or assets standardized and thus set the
price.
On distingue: There are:
 The
commodity exchanges, which are traded goods.
Stock
exchanges, where trading securities of companies.
A stock exchange, share
market or bourse is a corporation or mutual
organization which provides facilities for stock brokers and
traders, to trade company stocks and other securities. Stock
exchanges also provide facilities for the issue and
redemption of securities as well as other financial
instruments and capital events including the payment of
income and dividends. The securities traded on a stock
exchange include: shares issued by companies, unit trusts
and other pooled investment products and bonds. To be able
to trade a security on a certain stock exchange, it has to
be listed there. Usually there is a central location at
least for recordkeeping, but trade is less and less linked
to such a physical place, as modern markets are electronic
networks, which gives them advantages of speed and cost of
transactions. Trade on an exchange is by members only. The
initial offering of stocks and bonds to investors is by
definition done in the primary market and subsequent trading
is done in the secondary market. A stock exchange is often
the most important component of a stock market. Supply and
demand in stock markets is driven by various factors which,
as in all free markets, affect the price of stocks.
The Role of Stock Exchanges
Stock exchanges have multiple roles
in the economy, this may include the following:
Financial markets provide an efficient
allocation of resources.
The Exchange is primarily a place of finance
and investment.
It also allows the allocation and risk management.
It also allows the
liquidity of securities.
The financing of companies
The stock
market allows firms to finance, investment, making direct
contact between supply and demand for capital.
They talk about system unlike
the banking system. For the
IPO or capital increases businesses have access to
additional financial resources.
The
scholarships
have enabled companies to grow and therefore to develop
projects that a single individual could not be funded.
Par
example, For
example, the
London Stock Exchange was born with the need to finance
shipments to Russia and India
.Similarly, a rise is given
scholarships with the industrial revolution and the need to
finance, inter alias, major rail networks. On August
1, 1836, the Mohawk
and Hudson Railroad is the first railway side.
Raising
capital for businesses
The Stock Exchange provides
companies with the facility to raise capital for expansion
through selling shares to the investing public.
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Major stock exchanges
Twenty Major Stock Exchanges In The
World: Market Capitalization & Year-to-date Turnover at the
end of October 2007.
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Critiques
of the
Exchange
moral Reviews
In the
19th , these critics have been
particularly because of
socialist idealists,
Catholic social
Catholics against-revolutionary and
nationalist every opponent, for moral reasons at
the origin, a real economy (work, production, small farmer) to
the financial sphere.
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Future
of stock exchanges
The future of stock trading appears
to be electronic, as competition is continually growing
between the remaining traditional New York Stock Exchange
specialist system against the relatively new, all Electronic
Communications Networks, or ECNs. ECNs point to their speedy
execution of large block trades, while specialist system
proponents cite the role of specialists in maintaining
orderly markets, especially under extraordinary conditions
or for special types of orders.
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