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Definitions
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Dictionary > Definitions > Economy > Stock Exchange
Stock Exchange
Definition
Place of meeting of supply and demand, via a system of quotations centralized.
Description
The Stock Exchange has before a whole economic role of first order. To be financed, the companies have two solutions: either to borrow money, or to emit actions. When they choose this second solution, they need to be able to meet the investors. For this reason the Stock Exchange exists. As on a traditional market, where tradesmen meet consumers, the Stock Exchange is a market where, at the time of the introductions out of Stock Exchange, the transmitting companies of titles of capital (supply) meet the investors (). Once dimensioned out of Stock Exchange, the value of the company is equivalent to the confrontation of the prices suggested by the purchasers and the salesmen. This equilibrium price thus represents the value of the share quoted out of Stock Exchange.
Author
Md.khurshed Alam
Author Email
mk_alamcce@yahoo.com
References
Definitions to be consulted