The stock exchange is the most important part of the capital market of a country. The stock exchange is called the economic mirror of a country. It is called share market interchangeably. The stock exchange has started its journey in the middle age. After the industrial revolution, it got much spread all over the world. In 1773, some jobber started trading bond and stock in Sweating Alley in London. It was the institutional starting of the stock exchange. It is a market where share, debenture, bond etc are traded. It is an organization and specific location where buyers and sellers, sell and buy shares and bonds of the public limited company. Only the members of stock exchange are allowed to trade in a stock exchange.
- Harold: Stock exchange is an organized financial market, where stocks and debentures of public limited companies are bought and sold.”
- Hobday: “The stock exchange is a market for second-hand securities.”
- K. Bhushan: “the Stock exchange is an organized market for the purchase of selling of listed industrial and financial securities.”
- Hastings: “Stock exchange comprises at the place where buyers and sellers of stocks and bonds or their represented undertake transactions involving the sale of securities.”
The stock exchange is a market but it is not necessary to present in the body at the market to transact. So, we can say that stock exchange is an organization where the listed public limited company, government, organization, specialized organization buy and sell their shares, debentures, bonds, securities etc. in a specific manner.