Stock Exchange

Answer: A stock exchange is an organised market for buying and selling of securities such as shares, debentures and bonds of listed companies and government securities.

The Securities Contracts (Regulation) Act, 1956 defines it as an association, organisation or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling business of buying, selling and dealing in securities. Trading is done through registered brokers under the rules of the exchange and the supervision of SEBI. Examples: Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).