stock market - Stock Exchange

The scoop on stock exchanges and what they can offer you

A stock exchange allows stock trading to occur on its premises. This is where stock brokers and traders come together on behalf of their clients to buy and sell stocks and securities.  Despite being well-known for the buy and sell of stock, you can also expect to receive payment in terms of income and dividends from the stocks you own there as well.

The types of securities that are exchanged in a stock exchange are various. You may a security in the shares issued from various companies, bonds, unit trusts, pooled investment products and derivatives.  There are two kinds of markets used in the stock exchange process: primary market and secondary market. Initially the investors tell their traders if they are buying or selling stock. This occurs in the primary market. In the secondary market the trader finds a buyer/seller.