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Home Definitions

What is a Stock Exchange? Definition or Meaning

Posted by Bizversity

At the end of the day, a stock exchange is a local market. Rather than buying fruits, vegetables or knick knacks, you would buy and sell securities like bonds or shares in publicly traded companies. Unlike the weekend market though, you have a chance of hitting it big when it comes to the stock you buy as they could pay huge dividends.

For example…

The New York Stock Exchange or NYSE is the biggest in the world when measured by market capitalisation. This metric is determined by the total value of all the shares in the stock exchange and for the NYSE, this figure is in the trillions of dollars. Both big name companies and mum and dad businesses are listed in the NYSE.

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