Securities like shares, unit trusts, bonds and other investment products are traded in a Stock Exchange. The securities have to be listed in a stock exchange for them to be bought or sold. A person dealing in these securities has to be a member of the stock exchange. The supply and demand for a stock determines the price. The prices of the Securities are affected by global, political and economical events as well as natural calamities.
Shares of large and medium sized companies are listed. The listed companies are able to raise capital for their business by selling shares to the public. Trading in stocks is increasingly considered as a good way to make money, and more and more, people are keenly following the happenings in the stock exchange to make money right from home. Online trading has made it possible for transactions to take place within a very short time span, and transaction costs are very low.
The leading Stock exchanges in the world are the New York Stock Exchange NYSE – Headquartered in New York City, NASDAQ OMX – Headquartered in New York City, Tokyo Stock Exchange – Headquartered in Tokyo, London Stock Exchange – Headquartered in London and Shanghai Stock Exchange – Headquartered in Shanghai. Hundreds of thousands of shares worth millions of dollars are traded everyday in the major stock exchanges of the world.