Stock Exchange

Answer: A stock exchange is an organised and regulated market where existing (listed) securities such as shares, debentures and bonds are bought and sold.

The Securities Contracts (Regulation) Act, 1956 defines it as a body of individuals, incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. In India it is regulated by SEBI; BSE and NSE are the leading exchanges. It provides liquidity and marketability to securities, continuous price discovery, safety of transactions and helps companies raise capital.