• May 2019
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Stock Exchange

  1. A formally organized marketplace where securities are traded by members of the exchange, acting as agents (brokers) and as principals (dealers or traders), and which requires registration under Section 6 of the Exchange Act. Stock markets generally trade in stocks, equities, exchange-traded funds, futures, various types of derivatives and corporate bonds.

The term stock exchange often refers to a subset of the stock market. For instance, the New York Stock Exchange is a highly recognized trading hub, but it is only part of the larger U.S. stock market (which is only part of the global stock market).

Because of the stringent rules and regulations imposed by the exchange, only companies that meet those requirements can be publicly, or “listed,” on the exchange. Securities that don’t meet the requirements can still be bought and sold, but they are sold “over the counter.” Although these are considered riskier than listed securities, they are not inherently shady or untrustworthy. Some of today’s most trusted stocks were once over-the-counter trades.

 

  1.  Child development: A game in which rambunctious young boys dress in brightly colored blazers, get together in a room full of TV screens while yelling and holding up their fingers to indicate numbers. By the end of the game, the floor is littered with paper and everyone looks despondent.

 

EXAMPLE:

Four of the major stock exchanges in the U.S. stock market are the New York Stock Exchange, the Chicago Board Options Exchange, Nasdaq and Better Alternative Trading System.