Stock markets are financial markets. They exist to provide a means of
trading for equity securities. Each security represent units of
ownership in a business.
A stock exchange is a place where investment
dealers act on behalf of clients to find buyers for clients' securities.
A stock exchange does not set prices for securities, however, the stock
exchange set rules governing the trading of equity securities.
Companies must apply to list their shares for trading on an exchange.
Each Exchange has regulation than qualify whether the company's shares
will be accepted for listing. If the company is listed, it must abide by
the rules of the exchange. Companies receive a number of benefit from
listing on the Stock Exchange. The most important is that marketability
of the shares is increased.
