features stock exchange.pdf

class 12

2. FEATURES OF STOCK EXCHANGE
▪Association of persons
Or body of individuals
▪Recognition from the central government
Stock exchange requires recognition from the Central Government
▪Market for securities
Securities of public, Govt, corporate bodies are bought or sold
▪Deals in second-hand securities
Also called secondary market as it also deals in securities that have already been issued

3. ▪Regulates trade in securities
Provides facility to brokers and members to trade in securities to ensure free and fair trade
▪Allow dealings only in listed securities
Securities which are listed in stock exchange are called listed securities and only these are
allowed to be traded in stock exchange
▪Transactions effected through members
Transactions in stock exchange can be made only through authorised brokers or members.