Stock exchange

• Currently, there are about 205 stock exchanges in the world with a total capitalization of $1 trillion. Their main tasks are:
• Identification of the equilibrium exchange price;
• Provision of a centralized place where both the sale of securities to their first owners and their secondary resale can take place;
• Ensuring arbitration;
• Accumulating temporarily free funds and facilitating the transfer of ownership;
• Providing guarantees for the execution of transactions concluded in the exchange room;
• Ensuring publicity, openness of exchange trading;
• Development of ethical standards, a code of conduct for participants in exchange trading.

1. New York Stock Exchange ($25 trillion)

2. NASDAQ ($11.2 trillion)

3. Japan Exchange Group ($5.1 trillion)

4. Shanghai Stock Exchange ($4.7 trillion)

5. Euronext ($4.5 trillion)

6. Hong Kong Stock Exchange ($4.2 trillion)

7. Shenzhen Stock Exchange ($3.5 trillion)

8. London Stock Exchange ($2.9 trillion)

9. Toronto Stock Exchange ($1.8 trillion)

10. Bombay Stock Exchange ($1.5 trillion)

On the stock exchange, there is a purchase and sale of securities, the rate of which is determined by the income that they regularly bring. The exchange rate may fluctuate depending on how the supply and demand for securities correlate with each other. The most significant and dramatic changes in the rate can be observed when stock market crashes occur.

Stock exchanges can be open or closed, created by commercial and non-commercial organizations, joint stock and non-joint stock companies. Both individuals and legal entities can participate in the auction. Some countries have laws requiring bidders to obtain a special license that certifies the bidder's knowledge of financial transactions.