Explain any four features of Stock Exchange.

Answer: A stock exchange is an organised market for buying and selling existing securities. Its features are:

1. Market for existing securities: It deals in securities that are already issued and listed, such as shares, debentures and bonds. It is a secondary market.
2. Regulated market: It functions according to the Securities Contracts (Regulation) Act, 1956 and the rules of SEBI, which protect investors.
3. Dealings only in listed securities: Only securities listed on the exchange can be traded on it.
4. Transactions through members: Investors cannot trade directly; trading is done only through registered stock brokers (members).
5. Organised and recognised body: It is a body corporate recognised by the Government / SEBI, with a fixed place and fixed working hours, now with screen-based online trading.
6. Price determination: Prices of securities are decided by the forces of demand and supply.
7. Provides liquidity: It enables investors to convert securities into cash easily.