Understanding the Stock Market

Stock Exchanges Explained

A stock exchange is an organization that acts as the middle man between financial organizations, stockbrokers, and investors. They are centralized platforms that bring all interested parties together.

Stock exchanges essentially provide a platform that allows investors to buy and sell investments, allows companies to list their stock and allows brokers to deal in the market on behalf of their clients.

It’s not only possible to buy stocks on a stock exchange, it is also possible to buy and sell other types of investments like bonds, commodities, or precious metals.

A lot of stock exchanges are businesses in their own right and it is even possible to invest them. For example, the London Stock Exchange is list on the stock market in London.

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