What is a Stock Exchange and Its Essence

Published:3 October 2017 Updated:4 January 2024

A stock exchange is an organization that regularly ensures the smooth operation of stock marketIt also aims to provide reliable quotes for all securities, reliability and security of the stock trading process, etc. It is a serious system serving the constant movement of all securities. Investors carry out transactions, completely obeying its rules, established rates of securities value.

essence of the stock exchange

For the functioning of the exchange, the leading part of the stock market, is necessary:

  • The system of collecting applications, which are recorded, recorded in the registers.
  • A clearing (settlement) chamber, the purpose of which is to monitor the turnover of traders’ capital, make money deliveries on transactions, and carry out money transfers.
  • The depository center, which tracks the turnover of securities, collects accounting data.

Video about what is the stock exchange and where do stocks come from

Video taken from the channel United Traders on YouTube

These processes ensure the constant operation of the stock market, invisible to the human eye, they take place automatically. Today, the stock exchange is a functional electronic trading platform, convenient for conducting transactions and studying the history of income in a personal account. Maintaining the correct operation of the trading terminal 24 hours a day is the responsibility of a professional team that monitors orders.
Stock Exchange

Major stock exchanges

Here are the largest markets that investors and organizations turn to most often:

New York Stock Exchange NYSE

Working hours: 16:30 – 23:00 MSC;
Capitalization: *over $15 trillion;
Companies: 2464 pcs.
Website: nyse.com

NASDAQ OMX

Working hours: 16:30 – 23:00 MSC;
Capitalization: more than $4 trillion;
Companies: 2,786 pcs.
Website: nasdaq.com

Tokyo Stock Exchange
Working hours: 03:00 – 05:30 Moscow time zone;
Capitalization: more than $3 trillion;
Companies: 3470 pcs.
Website: jpx.co.jp

London Stock Exchange
Working hours: 10:00 – 18:30 Moscow time zone;
Capitalization: more than $3 trillion;
Companies: 2,396 pcs.
Website: londonstockexchange.com

Shanghai Stock Exchange
Schedule: 04:30 – 06:30 MSK;
Capitalization: more than $2 trillion;
Companies: 1,007 pcs.
Website: sse.com.cn

Hong Kong Stock Exchange
Working schedule: 04:30 – 07:00 MSK;
Capitalization: more than $2 trillion;
Companies: 1763 pcs.
Website: hkex.com.hk

* Capitalization information taken from WikipediaThe data are for 2010.

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