Stock markets are financial markets. They exist to provide a means of trading
for equity securities. Each security represent units of ownership in a business.
A stock exchange is a place where investment dealers act on behalf of clients
to find buyers for clients' securities. A stock exchange does not set prices
for securities, however, the stock exchange set rules governing the trading
of equity securities.
Companies must apply to list their shares for trading on an exchange. Each
Exchange has regulation than qualify whether the company's shares will be
accepted for listing. If the company is listed, it must abide by the rules
of the exchange. Companies receive a number of benefit from listing on the
Stock Exchange. The most important is that marketability of the shares is
increased.
