Financial markets

Bond market Fixed income Corporate bond Government bond Municipal bond Bond valuation High-yield debt

Stock market Stock Preferred stock Common stock Registered share Voting share Stock exchange

Foreign exchange market

Derivatives market Credit derivative Hybrid security Options Futures Forwards Swaps

Other Markets Commodity market Money market OTC market Real estate market Spot market

Finance series Financial market Financial market participants Corporate finance Personal finance Public finance Banks and Banking Financial regulation

v • d • e

A stock exchange, share market or bourse is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. In Economics, a financial market is a mechanism that allows people to easily buy and sell ( Trade) financial Securities (such as stocks and bonds The bond market (also known as the debt, credit, or fixed income market) is a Financial market where participants buy and sell Debt Fixed income refers to any type of Investment that yields a regular (or fixed return A Corporate Bond is a bond issued by a Corporation. The term is usually applied to longer-term debt instruments generally with a maturity date falling at least a A government bond is a bond issued by a national government denominated in the country's own Currency. In the United States, a municipal bond (or muni) is a bond issued by a city or other local government or their agencies Bond valuation is the process of determining the Fair price of a bond. In Finance, a high yield bond ( non-investment grade bond, speculative grade bond or junk bond) is a bond that is rated below A stock market, or (equity market is a private or public market for the trading of company Stock and derivatives of company Software for Fixed assets management and Stock control developed in 2004. Preferred stock, also called preferred shares or preference shares, is typically a higher ranking stock than Voting shares, and its terms are negotiated A voting share (also called common stock or ordinary share) is a share of Stock giving the Stockholder the right to vote on matters A Registered share is a Stock that is registered on the name of the exact owner A voting share (also called common stock or ordinary share) is a share of Stock giving the Stockholder the right to vote on matters The foreign exchange ( currency or forex or FX) market refers to the market for currencies. The derivatives markets are the Financial markets for derivatives The market can be divided into two that for exchange traded derivatives and that for In Finance, a credit derivative is a derivative whose value derives from the Credit risk on an underlying bond loan or other financial asset '"Hybrid securities"' often referred as "hybrids" are a broad group of securities that combine the elements of the two broader groups of securities Debt and Options are financial instruments that convey the right but not the obligation to engage in a future transaction on some Underlying security, or in a Futures In Finance, a futures contract is a standardized Contract, traded on a Futures exchange, to buy or sell a certain Underlying instrument A forward contract is an agreement between two parties to buy or sell an asset at a specified point of time in the future For the Thoroughbred horse racing champion see Swaps (horse. In finance a swap is a derivative in which two counterparties Commodity markets are markets where raw or primary products are exchanged In Finance, the money market is the global Financial market for short-term borrowing and lending Over-the-counter ( OTC) trading is to Trade Financial instruments such as Stocks bonds, commodities or derivatives Real estate is a legal term (in some jurisdictions notably in the USA, United Kingdom The spot market or cash market is a Commodities or Securities market in which goods are sold for Cash and delivered immediately The field of finance refers to the concepts of Time, Money and Risk and how they are interrelated In Economics, a financial market is a mechanism that allows people to easily buy and sell ( Trade) financial Securities (such as stocks and bonds There are two basic financial market participant categories Investor vs Corporate finance is an area of Finance dealing with the financial decisions Corporations make and the tools and analysis used to make these decisions Personal finance is the application of the principles of Finance to the monetary decisions of an individual or family unit Public finance is a field of economics concerned with paying for collective or governmental activities and with the administration and design of those activities A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money Financial regulations are a form of Regulation or supervision which subjects Financial institutions to certain requirements restrictions and guidelines aiming to A corporation is a separate legal entity usually used to conduct business A mutual, mutual organization, or mutual society is an Organization (which is often but not always a company or Business) based A stock broker or stockbroker is a qualified and regulated professional who buys and sells shares and other securities through Market makers or In Finance, a trader is someone who buys and sells Financial instruments such as stocks, bonds and derivatives. Software for Fixed assets management and Stock control developed in 2004. A security is a Fungible, Negotiable instrument representing financial value Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. Dividends are payments made by a Corporation to its Shareholder members The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and bonds. In financial markets, a share is a Unit of account for various financial instruments including Stocks Mutual funds Limited partnerships A unit trust is a form of collective investment constituted under a trust deed In Finance, a bond is a Debt security, in which the authorized issuer owes the holders a debt and is obliged to repay the principal and Interest To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. An electronic communication network ( ECN) is the term used in financial circles for a type of computer system that facilitates trading of financial products outside of Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. See Investor AB for the Swedish investment company An investor is any party that makes an Investment. The primary is that part of the Capital markets that deals with the issuance of new securities. The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering A stock exchange is often the most important component of a stock market. A stock market, or (equity market is a private or public market for the trading of company Stock and derivatives of company Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks (see stock valuation). A free market is a Market in which property rights are voluntarily exchanged at a price arranged completely by the mutual consent of sellers and buyers

There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. Over-the-counter ( OTC) trading is to Trade Financial instruments such as Stocks bonds, commodities or derivatives This is the usual way that bonds are traded. In Finance, a bond is a Debt security, in which the authorized issuer owes the holders a debt and is obliged to repay the principal and Interest Increasingly, stock exchanges are part of a global market for securities.

Contents 1 History of stock exchanges 2 The role of stock exchanges 2.1 Raising capital for businesses 2.2 Mobilizing savings for investment 2.3 Facilitating company growth 2.4 Redistribution of wealth 2.5 Corporate governance 2.6 Creating investment opportunities for small investors 2.7 Government capital-raising for development projects 2.8 Barometer of the economy 3 Major stock exchanges 4 Listing requirements 4.1 Requirements by stock exchange 5 Ownership 6 Other types of exchanges 7 The future of stock exchanges 8 Gallery 9 See also 9.1 Lists 10 References

History of stock exchanges

In 11th century France the courtiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. As these men also traded in debts, they could be called the first brokers.

Some stories suggest that the origins of the term "bourse" come from the Latin bursa meaning a bag because, in 13th century Bruges, the sign of a purse (or perhaps three purses), hung on the front of the house where merchants met. Bruges (Brugge is the capital and largest city of the province of West Flanders in the Flemish Region of Belgium.

However, it is more likely that in the late 13th century commodity traders in Bruges gathered inside the house of a man called Van der Burse, and in 1309 they institutionalized this until now informal meeting and became the "Bruges Bourse". The idea spread quickly around Flanders and neighbouring counties and "Bourses" soon opened in Ghent and Amsterdam. Flanders (Vlaanderen Flandre Flandern is a geographical region located in parts of present day Belgium, France, and the Netherlands. Ghent (ˈɡɛnt Gent ʝɛnt in Dutch, Gand in French, and formerly Gaunt in English) is a City and a Amsterdam (pronounced) is the capital and largest city of the Netherlands, located in the province of North Holland in the west

The house of the Beurze family on Vlaamingstraat Bruges was the site of the worlds first stock Exchange, circa 1415. The term Bourse is believed to have derived from the family name Beurze.

In the middle of the 13th century, Venetian bankers began to trade in government securities. Venice ( Italian: Venezia, Venetian: Venesia or Venexia) is a city in Northern Italy, the capital of the In 1351, the Venetian Government outlawed spreading rumors intended to lower the price of government funds. There were people in Pisa, Verona, Genoa and Florence who also began trading in government securities during the 14th century. Pisa is a city in Tuscany, central Italy, on the right bank of the mouth of the Arno River on the Ligurian Sea. Verona is a city and provincial capital in Veneto, Northern Italy. Genoa ( Genova, ˈdʒɛːnova in Italian; Zena in Genoese and Ligurian; Genua in Latin and archaically in English Florence ( Italian: Firenze Florentia and Fiorenza) is the Capital City of the Italian region of Tuscany This was only possible because these were independent city states ruled by a council of influential citizens, not by a duke.

The Dutch later started joint stock companies, which let shareholders invest in business ventures and get a share of their profits - or losses. A joint stock company (JSC is a type of business entity it is a type of Corporation or Partnership. A mutual shareholder or stockholder is an Individual or company (including a Corporation) that legally owns one or more shares of In 1602, the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. The Dutch East India Company ( Vereenigde Oost-Indische Compagnie or VOC in old-spelling Dutch, literally "United East Indian This entry is on the Amsterdam Stock Exchange before it merged into Euronext. It was the first company to issue stocks and bonds. Software for Fixed assets management and Stock control developed in 2004. In Finance, a bond is a Debt security, in which the authorized issuer owes the holders a debt and is obliged to repay the principal and Interest In 1688, the trading of stocks began on a stock exchange in London. London ( ˈlʌndən is the capital and largest urban area in the United Kingdom.

The role of stock exchanges

Stock exchanges have multiple roles in the economy, this may include the following:^[1]

Raising capital for businesses

The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public. An economy is the realized social system of production exchange distribution and consumption of goods and services of a country or other area Generally a company is a form of Business organization. The precise definition varies In Economics, capital or capital Goods or real capital refers to items of extensive value In financial markets, a share is a Unit of account for various financial instruments including Stocks Mutual funds Limited partnerships Investment or investing is a term with several closely-related meanings in Business management, Finance and Economics, related to saving ^[2]

Mobilizing savings for investment

When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to promote business activity with benefits for several economic sectors such as agriculture, commerce and industry, resulting in a stronger economic growth and higher productivity levels and firms. A deposit account is a current account at a Banking institution that allows money to be deposited and withdrawn by the account holder with the transactions and resulting balance A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money A business (also called firm or an enterprise) is a legally recognized organizational entity designed to provide goods and/or services to Agriculture refers to the production of goods through the growing of plants and fungi and the raising of domesticated Animals The study of agriculture Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumer For other uses of this term see Industry (disambiguation An industry (from Latin industrius, "diligent industrious" Economic growth is the increase in the amount of the goods and services produced by an economy over time Productivity in Economics refers to measures of output from production processes per unit of input

Facilitating company growth

Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets. Product lining is the Marketing strategy of offering for sale several related products. Market share, in Strategic management and Marketing, is the percentage or proportion of the total available Market or Market segment that is In Business and Accounting, assets are everything owned by a person or company (all tangible and intangible property that can be converted into cash. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways for a company to grow by acquisition or fusion. In business a takeover is the purchase of one company (the target) by another (the acquirer, or bidder) A stock market, or (equity market is a private or public market for the trading of company Stock and derivatives of company

Redistribution of wealth

Stocks exchanges do not exist to redistribute wealth. However, both casual and professional stock investors, through dividends and stock price increases that may result in capital gains, will share in the wealth of profitable businesses. A stock trader or a stock investor is an Individual or firm who buys and sells Stocks or bonds (and possibly other Dividends are payments made by a Corporation to its Shareholder members A share price is the price of a single share of a company's Stock.

Corporate governance

By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders and the more stringent rules for public corporations imposed by public stock exchanges and the government. Management (covering theory practice and scope of management and Manager' (covering the people who manage might help clarify and systematise Economic efficiency is used to refer to a number of related concepts Consequently, it is alleged that public companies (companies that are owned by shareholders who are members of the general public and trade shares on public exchanges) tend to have better management records than privately-held companies (those companies where shares are not publicly traded, often owned by the company founders and/or their families and heirs, or otherwise by a small group of investors). A public company usually refers to a company that is permitted to offer its registered securities ( Stock, bonds, etc The term privately held company refers to ownership of a business company in two different ways first referring to ownership by non-governmental organizations and second However, some well-documented cases are known where it is alleged that there has been considerable slippage in corporate governance on the part of some public companies (Pets.com (2000), Enron Corporation (2001), One.Tel (2001), Sunbeam (2001), Webvan (2001), Adelphia (2002), MCI WorldCom (2002), or Parmalat (2003), are among the most widely scrutinized by the media). Corporate governance is the set of Processes customs Policies, laws and institutions affecting the way a Corporation is directed administered or controlled Petscom is a former dot-com enterprise that ceased operations in November 2000 Enron Creditors Recovery Corporation (formerly Enron Corporation, former NYSE ticker symbol ENE was an American Energy company based in OneTel is the generic term used to describe a group of Australian based Telecommunications companies including principally the publicly listed One Sunbeam Products is an American brand that has produced electric Home appliances since 1910 Webvan was an online "credit and delivery" Grocery business that went Bankrupt in 2001 Adelphia Communications Corporation, named after the Greek word "brothers" was the fifth largest cable company in the United States before filing for Bankruptcy MCI Inc is an American Telecommunications company that is headquartered in Ashburn Virginia. Parmalat SpA ( is a Multinational Italian Dairy and food corporation

Creating investment opportunities for small investors

As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford. A stock trader or a stock investor is an Individual or firm who buys and sells Stocks or bonds (and possibly other Therefore the Stock Exchange provides the opportunity for small investors to own shares of the same companies as large investors.

Government capital-raising for development projects

Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds. A security is a Fungible, Negotiable instrument representing financial value In Finance, a bond is a Debt security, in which the authorized issuer owes the holders a debt and is obliged to repay the principal and Interest These bonds can be raised through the Stock Exchange whereby members of the public buy them, thus loaning money to the government. The issuance of such bonds can obviate the need to directly tax the citizens in order to finance development, although by securing such bonds with the full faith and credit of the government instead of with collateral, the result is that the government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature.

Barometer of the economy

At the stock exchange, share prices rise and fall depending, largely, on market forces. Sao Paulo Stock Exchangejpg|thumb| Virtual market arena where buyer and seller are not present and trade via intemediates and electronical information Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. An economy is the realized social system of production exchange distribution and consumption of goods and services of a country or other area An economic recession, depression, or financial crisis could eventually lead to a stock market crash. A recession is a contraction phase of the Business cycle. The U The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value A stock market crash is a sudden dramatic decline of Stock prices across a significant cross-section of a Stock market. Therefore the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy. A stock market index is a method of measuring a section of the Stock market.

Major stock exchanges

Twenty Major Stock Exchanges In The World: Market Capitalization & Year-to-date Turnover at the end of October 2007

Region	Stock Exchange	Market Value (trillions of US dollars)	Total Share Turnover (trillions of US dollars)
Africa	Johannesburg Securities Exchange	$0. 940	$0. 349
Americas	NASDAQ	$4. The NASDAQ (acronym of National Association of Securities Dealers Automated Quotations) is an American Stock exchange. 39	$12. 4
Americas	São Paulo Stock Exchange	$1. 40	$0. 476
Americas	Toronto Stock Exchange	$2. 29	$1. 36
Americas/Europe	NYSE Euronext	$20. NYSE Euronext Inc (formerly NYSE Group Inc and Euronext NV) is a Euro - American for-profit corporation that operates multiple 7	$28. 7
Asia-Pacific	Australian Securities Exchange	$1. The Australian Securities Exchange ( ASX) is the primary Stock exchange in Australia. 453	$1. 003
South Asia	Bombay Stock Exchange	$1. The Bombay Stock Exchange Limited (मुंबई शेयर बाज़ार Mumbaī Śeyar Bājār) (formerly The Stock Exchange Mumbai; popularly called 61	$0. 263
Asia-Pacific	Hong Kong Stock Exchange	$2. The Hong Kong Stock Exchange ( also 港交所 abbreviated as HKEX;) is the Stock exchange of Hong Kong. 97	$1. 70
Asia-Pacific	Korea Exchange	$1. Korea Exchange (KRX was created through the integration of the three existing Korean spot & futures exchanges ( Korea Stock Exchange, Korea Futures Exchange and KOSDAQ 26	$1. 66
South Asia	National Stock Exchange of India	$1. The National Stock Exchange of India Limited or S&P CNX NIFTY ( NSE) is a Mumbai -based Stock exchange. 46	$0. 564
Asia-Pacific	Shanghai Stock Exchange	$3. The Shanghai Stock Exchange ( SSE) ( is a Chinese Stock exchange based in the city of Shanghai, with a Market capitalization 02	$3. 56
Asia-Pacific	Shenzhen Stock Exchange	$0. Shenzhen Stock Exchange ( is one of the People's Republic of China 's three Stock exchanges alongside the Shanghai Stock Exchange and the 741	$1. 86
Asia-Pacific	Tokyo Stock Exchange	$4. The, or TSE, located in Tokyo, Japan, is the second largest Stock exchange market in the world by market value second only to the New York Stock 63	$5. 45
Europe	Frankfurt Stock Exchange (Deutsche Börse)	$2. The Frankfurt Stock Exchange ( FWB Frankfurter Wertpapierbörse) is a Stock exchange located in Frankfurt, Germany. Deutsche Börse AG ( (ˈdɔɪtʃə ˈbɶʁzə is a marketplace organizer for the trading of Shares and other securities. 12	$3. 64
Europe	London Stock Exchange	$4. The London Stock Exchange or LSE is a Stock exchange located in London, England. 21	$9. 14
Europe	Madrid Stock Exchange (Bolsas y Mercados Españoles)	$1. Bolsa de Madrid (Madrid Stock Exchange is the largest and most international of Spain's four regional Stock exchanges located in Barcelona, Valencia Bolsas y Mercados Españoles ( BME,) is the Spanish company that deals with the organizational aspects of the Spanish Stock exchanges and financial markets which includes 83	$2. 49
Europe	Milan Stock Exchange (Borsa Italiana)	$1. The Borsa Italiana Sp A, based in Milan, is Italy 's main Stock exchange. 13	$1. 98
Europe	Moscow Interbank Currency Exchange (MICEX)	$0. History MICEX started with currency auctions in November 1989 as an initiative by the Foreign trade and investment bank of the USSR. 9652	$0. 4882
Europe	Nordic Stock Exchange Group OMX1	$1. OMX AB ( A ktie' b' olaget O ptions' m' äklarna/Helsinki Stock E' x' change is a Swedish - Finnish Financial 38	$1. 60
Europe	Swiss Exchange	$1. SWX Swiss Exchange is Switzerland 's Stock exchange, based in Zürich. 33	$1. 58

Note 1: includes the Copenhagen, Helsinki, Iceland, Stockholm, Tallinn, Riga and Vilnius Stock Exchanges
Note 2: latest data available is at the end of June 2007
Note 3: latest data available is at the end of September 2007

• Sources: World Federation of Exchanges - Statistics/Monthly
• Remarks: There are 2 pending major mergers: NASDAQ with OMX; and London Stock Exchange with Milan Stock Exchange

The main stock exchanges

• American Stock Exchange
• Australian Securities Exchange
• Belgrade Stock Exchange
• Bermuda Stock Exchange
• Bolsa Mexicana de Valores
• Bolsa de Valores de Colombia
• Bolsa de Valores de Lima
• Bombay Stock Exchange
• Bucharest Stock Exchange
• Budapest Stock Exchange
• Casablanca Stock Exchange
• Channel Islands Stock Exchange
• Euronext Amsterdam
• Euronext Brussels
• Euronext Lisbon
• Euronext Paris
• Frankfurt Stock Exchange
• Ghana Stock Exchange
• Helsinki Stock Exchange
• Hong Kong Stock Exchange
• Istanbul Stock Exchange
• Jakarta Stock Exchange
• JASDAQ
• Johannesburg Securities Exchange
• Karachi Stock Exchange
• Korea Stock Exchange
• Kuwait Stock Exchange
• Lahore Stock Exchange
• London Stock Exchange
• Madrid Stock Exchange
• Malaysia Stock Exchange
• Milan Stock Exchange
• Nagoya Stock Exchange
• Nigeria Stock Exchange
• National Stock Exchange of India
• NASDAQ
• New York Stock Exchange
• Osaka Securities Exchange
• Philippine Stock Exchange
• Santiago Stock Exchange
• São Paulo Stock Exchange
• Shanghai Stock Exchange
• Singapore Exchange
• Stockholm Stock Exchange
• Taiwan Stock Exchange
• Tokyo Stock Exchange
• Toronto Stock Exchange
• Warsaw Stock Exchange
• Zurich Stock Exchange

See also: Category:Stock exchanges

Listing requirements

Listing requirements are the set of conditions imposed by a given stock exchange upon companies that want to be listed on that exchange. The American Stock Exchange ( AMEX) is an American Stock exchange situated in New York. The Australian Securities Exchange ( ASX) is the primary Stock exchange in Australia. Belgrade Stock Exchange (BELEX (Beogradska Berza ad is a Stock exchange in Belgrade, Serbia. The Bermuda Stock Exchange (BSX established in 1971 is now the world’s leading fully electronic offshore securities market with a current Market capitalization (excluding The Bolsa de Valores de Colombia, also known as BVC, is the principal Stock exchange of Colombia. The Bombay Stock Exchange Limited (मुंबई शेयर बाज़ार Mumbaī Śeyar Bājār) (formerly The Stock Exchange Mumbai; popularly called The Bucharest Stock Exchange ( Bursa de Valori Bucureşti in Romanian) is a Stock exchange in Bucharest, Capital of Romania The Budapest Stock Exchange (BSE was re-opened in 1990 with Headquarters in Budapest, Hungary. The Casablanca Stock Exchange ( La Bourse de Casablanca) is a Stock exchange in Casablanca, Morocco. This entry is on the Amsterdam Stock Exchange before it merged into Euronext. The Brussels Stock Exchange (BSE (Bourse de Bruxelles Beurs van Brussel was founded in Brussels, Belgium by Napoleonic decree in 1801 Euronext Lisbon is a Stock exchange in Lisbon, Portugal. It belongs to the NYSE Euronext group the first global stock exchange Euronext Paris is France 's securities market formerly known as the Paris Bourse, which merged with the Amsterdam, Lisbon and Brussels The Frankfurt Stock Exchange ( FWB Frankfurter Wertpapierbörse) is a Stock exchange located in Frankfurt, Germany. The Ghana Stock Exchange (GSE is the principal Stock exchange of Ghana. The Helsinki Stock Exchange ( Finnish: Helsingin Pörssi, Swedish: Helsingforsbörsen) is a Stock exchange located in The Hong Kong Stock Exchange ( also 港交所 abbreviated as HKEX;) is the Stock exchange of Hong Kong. The Istanbul Stock Exchange ( ISE) ( Turkish: İstanbul Menkul Kıymetler Borsası, İMKB is the only corporation in Turkey for Securities Jakarta Stock Exchange ( JSX) or in Indonesian Bursa Efek Jakarta ( BEJ) is a Stock exchange based in Jakarta, Indonesia The is a Securities exchange headquartered in Tokyo, Japan. JASDAQ is not related to NASDAQ in the United States but operates an electronic trading The Karachi Stock Exchange or KSE is a Stock exchange located in Karachi, Sindh, Pakistan. Korea Stock Exchange was South Korea 's exchange established in 1956. The Kuwait Stock Exchange (KSE is the national Stock market of The State of Kuwait. Lahore Stock Exchange (Guarantee Limited is Pakistan's second largest stock exchange after the Karachi Stock Exchange. The London Stock Exchange or LSE is a Stock exchange located in London, England. Bolsa de Madrid (Madrid Stock Exchange is the largest and most international of Spain's four regional Stock exchanges located in Barcelona, Valencia The Bursa Malaysia ( or Malaysia Exchange, MYX previously known as Kuala Lumpur Stock Exchange ( KLSE, Bursa Saham Kuala Lumpur The Borsa Italiana Sp A, based in Milan, is Italy 's main Stock exchange. Nagoya Stock Exchange (名古屋証券取引所 Nagoya Shōken Torihikijo, NSE is a stock trading market in Nagoya, Japan. The Nigerian Stock Exchange ( NSE) is the major Stock exchange of Nigeria. The National Stock Exchange of India Limited or S&P CNX NIFTY ( NSE) is a Mumbai -based Stock exchange. The NASDAQ (acronym of National Association of Securities Dealers Automated Quotations) is an American Stock exchange. The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. The (Hercules 8697 is the second largest Securities exchange in Japan, in terms of amount of business handled The Philippine Stock Exchange ( Filipino The Santiago Stock Exchange (Bolsa de Comercio de Santiago SSE founded in November 27, 1893, is Chile 's dominant Stock exchange. The Shanghai Stock Exchange ( SSE) ( is a Chinese Stock exchange based in the city of Shanghai, with a Market capitalization The Stockholm Stock Exchange (Stockholmsbörsen is a Stock exchange located in Stockholm, Sweden. The Taiwan Stock Exchange Corporation ( TSEC) is a Financial institution, located in Taipei 101, in Taipei, Taiwan. The, or TSE, located in Tokyo, Japan, is the second largest Stock exchange market in the world by market value second only to the New York Stock The Warsaw Stock Exchange (WSE Giełda Papierów Wartościowych w Warszawie is a Stock exchange located in Warsaw, Poland. SWX Swiss Exchange is Switzerland 's Stock exchange, based in Zürich. Such conditions sometimes include minimum number of shares outstanding, minimum market capitalization, and minimum annual income.

Requirements by stock exchange

Companies have to meet the requirements of the exchange in order to have their stocks and shares listed and traded there, but requirements vary by stock exchange:

• London Stock Exchange: The main market of the London Stock Exchange has requirements for a minimum market capitalization (£700,000), three years of audited financial statements, minimum public float (25 per cent) and sufficient working capital for at least 12 months from the date of listing. The London Stock Exchange or LSE is a Stock exchange located in London, England. Working capital, also known as net working capital, is a financial metric which represents operating liquidity available to a business

• NASDAQ Stock Exchange: To be listed on the NASDAQ a company must have issued at least 1. The NASDAQ (acronym of National Association of Securities Dealers Automated Quotations) is an American Stock exchange. 25 million shares of stock worth at least $70 million and must have earned more than $11 million over the last three years. ^[3]

• New York Stock Exchange: To be listed on the New York Stock Exchange (NYSE), for example, a company must have issued at least a million shares of stock worth $100 million and must have earned more than $10 million over the last three years. The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. ^[4]

• Bombay Stock Exchange: Bombay Stock Exchange (BSE) has requirements for a minimum market capitalization of Rs. The Bombay Stock Exchange Limited (मुंबई शेयर बाज़ार Mumbaī Śeyar Bājār) (formerly The Stock Exchange Mumbai; popularly called 250 Million and minimum public float equivalent to Rs. 100 Million. ^[5]

Ownership

Stock exchanges originated as mutual organizations, owned by its member stock brokers. A mutual, mutual organization, or mutual society is an Organization (which is often but not always a company or Business) based There has been a recent trend for stock exchanges to demutualize, where the members sell their shares in an initial public offering. Initial public offering (IPO, also referred to simply as a "public offering" is when a company issues Common stock or shares to the public for the first In this way the mutual organization becomes a corporation, with shares that are listed on a stock exchange. Examples are Australian Securities Exchange (1998), Euronext (merged with New York Stock Exchange), NASDAQ (2002), the New York Stock Exchange (2005), Bolsas y Mercados Españoles, and the São Paulo Stock Exchange (2007). The Australian Securities Exchange ( ASX) is the primary Stock exchange in Australia. Euronext NV is a pan- European Stock exchange based in Paris and with subsidiaries in Belgium, France, Netherlands The NASDAQ (acronym of National Association of Securities Dealers Automated Quotations) is an American Stock exchange. The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. Bolsas y Mercados Españoles ( BME,) is the Spanish company that deals with the organizational aspects of the Spanish Stock exchanges and financial markets which includes

Other types of exchanges

In the 19th century, exchanges were opened to trade forward contracts on commodities. A forward contract is an agreement between two parties to buy or sell an asset at a specified point of time in the future A commodity is anything for which there is demand but which is supplied without qualitative differentiation across a market Exchange traded forward contracts are called futures contracts. In Finance, a futures contract is a standardized Contract, traded on a Futures exchange, to buy or sell a certain Underlying instrument These commodity exchanges later started offering future contracts on other products, such as interest rates and shares, as well as options contracts. Options are financial instruments that convey the right but not the obligation to engage in a future transaction on some Underlying security, or in a Futures They are now generally known as futures exchanges. A futures exchange is a central financial exchange where people can trade standardized Futures contracts; that is a contract to buy specific quantities of a Commodity

The future of stock exchanges

The future of stock trading appears to be electronic, as competition is continually growing between the remaining traditional New York Stock Exchange specialist system against the relatively new, all Electronic Communications Networks, or ECNs. The New York Stock Exchange ( NYSE) is a Stock exchange based in New York City. A market maker is a firm that quotes both a buy and a sell price in a Financial instrument or Commodity, hoping to make a profit on the turn An electronic communication network ( ECN) is the term used in financial circles for a type of computer system that facilitates trading of financial products outside of ECNs point to their speedy execution of large block trades, while specialist system proponents cite the role of specialists in maintaining orderly markets, especially under extraordinary conditions or for special types of orders.

The ECNs contend that an array of special interests profit at the expense of investors in even the most mundane exchange-directed trades. Machine-based systems, they argue, are much more efficient, because they speed up the execution mechanism and eliminate the need to deal with an intermediary.

Historically, the 'market' (which, as noted, encompasses the totality of stock trading on all exchanges) has been slow to respond to technological innovation. A stock market, or (equity market is a private or public market for the trading of company Stock and derivatives of company Conversion to all-electronic trading could erode/eliminate the trading profits of floor specialists and the NYSE's "upstairs traders. "

William Lupien, founder of the Instinet trading system and the OptiMark system, has been quoted as saying "I'd definitely say the ECNs are winning. . . Things happen awfully fast once you reach the tipping point. We're now at the tipping point. "

Congress mandated the establishment of a national market system of multiple exchanges in 1975. Since then, ECNs have been developing rapidly.

One example of improved efficiency of ECNs is the prevention of front running, by which manual Wall Street traders use knowledge of a customer's incoming order to place their own orders so as to benefit from the perceived change to market direction that the introduction of a large order will cause. Front running is the illegal practice of a Stock broker executing orders on a security for their own account (and thus affecting prices before filling By executing large trades at lightning speed without manual intervention, ECNs make impossible this illegal practice, for which several NYSE floor brokers were investigated and severely fined in recent years. Under the specialist system, when the market sees a large trade in a name, other buyers are immediately able to look to see how big the trader is in the name, and make inferences about why s/he is selling or buying. All traders who are quick enough are able to use that information to anticipate price movements.

ECNs have changed ordinary stock transaction processing (like brokerage services before them) into a commodity-type business. ECNs could regulate the fairness of initial public offerings (IPOs), oversee Hambrecht's OpenIPO process, or measure the effectiveness of securities research and use transaction fees to subsidize small- and mid-cap research efforts. OpenIPO is an innovative auction process pioneered by the investment bank WR Hambrecht + Co for distributing stock in an Initial public offering to individuals and

Some, however, believe the answer will be some combination of the best of technology and "upstairs trading" — in other words, a hybrid model.

Trading 25,000 shares of General Electric stock (recent quote: $34. 76; recent volume: 44,760,300) would be a relatively simple e-commerce transaction; trading 100 shares of Berkshire Hathaway Class A stock (recent quote: $139,700. Berkshire Hathaway ( for supervoting shares and for nonvoting shares is a conglomerate Holding company headquartered in Omaha, Nebraska 00; recent volume: 850) may never be. The choice of system should be clear (but always that of the trader), based on the characteristics of the security to be traded.

Even with ECNs forming an important part of a national market system, opportunities presumably remain to profit from the spread between the bid and offer price. That is especially true for investment managers that direct huge trading volume, and own a stake in an ECN or specialist firm. For example, in its individual stock-brokerage accounts, "Fidelity Investments runs 29% of its undesignated orders in NYSE-listed stocks, and 37% of its undesignated market orders through the Boston Stock Exchange, where an affiliate controls a specialist post. Fidelity Investments is a provider of investment products and services The Boston Stock Exchange (BSE is a regional Stock exchange located in Boston, Massachusetts. "

Fidelity says these arrangements are governed by a separate brokerage "order-flow management" team, which seeks to obtain the best possible execution for customers, and that its execution is highly rated.

Gallery

Bombay Stock Exchange	Frankfurt Stock Exchange	Hong Kong Stock Exchange	London Stock Exchange
Madrid Stock Exchange	Mexican Stock Exchange	Montreal Stock Exchange	Osaka Securities Exchange
Milan Stock Exchange	Philippine Stock Exchange	São Paulo Stock Exchange	Shanghai Stock Exchange
SWX Swiss Exchange	Taiwan Stock Exchange	Tokyo Stock Exchange	Toronto Stock Exchange

See also

• Auction
• Capital market
• Commodities exchange
• Securities
• Shareholder
• Stock investor
• Stock market
• Trader (finance)

Lists

• List of stock exchanges
• List of stock market indices
• List of marketing topics
• List of management topics
• List of economics topics
• List of accounting topics
• List of finance topics

References

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