21/02/2022
stock exchange, also called stock market or in continental Europe bourse, organized market for the sale and purchase of securities such as shares, stocks, and bonds.
In most countries the stock exchange has two important functions. As a ready market for securities, it ensures their liquidity and thus encourages people to channel savings into corporate investment. As a pricing mechanism, it allocates capital among firms by determining prices that reflect the true investment value of a company’s stock. (Ideally, this price represents the present value of the stream of expected income per share.)
