FAQ on Stocks

What is a stock exchange?

A stock exchange is a market where stocks are sold and bought. It represents a window that gives the holders of stock the freedom to dispose of the stocks and get back by money by selling it to buyers. Similarly it gives the opportunity for buyers to buy the stock from sellers. It is an organized platform wherein both parties (buyers and sellers) can interact and make a deal. Most of the rules are generalized and standardized to make it easier for members to understand the offers made by the other party. Because of high volumes, the cost of transacting through a stock exchange is cheaper compared to striking individual deals. It also provides indices and other products which act as barometers of performance of companies in the country thereby indicating the health of the economy.
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