ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Most stocks are traded on exchanges such as the New York Stock Exchange (NYSE) or the NASDAQ. Stock exchanges essentially provide the marketplace to facilitate the buying and selling of stocks among investors.

Detailed explanation-2: -Common stock is the most widely available type of shares issued by a company and what you will likely encounter when trading stocks on an exchange. These shares typically come with voting rights, but are the last in line in the preference ordering of being repaid if a company goes bankrupt.

Detailed explanation-3: -Common stock is an asset for the company that issued it, but it is not a liability. Common stock represents ownership in a company and represents a claim on the company’s assets and earnings.

Detailed explanation-4: -Most often, stocks are bought and sold on stock exchanges, such as the Nasdaq or the New York Stock Exchange (NYSE). After a company goes public through an initial public offering (IPO), its stock becomes available for investors to buy and sell on an exchange.

Detailed explanation-5: -An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange.